5 years of GST: Revenue collection of one lakh crores is happening every month, tax system has become hi-tech
GST
Highlights
- Today GST has completed half a decade journey on 30th June.
- Revenue collection of one lakh crore rupees every month has become a normal thing.
- Earlier, on average, 31% tax was to be paid by including VAT, Excise Duty, CST etc.
Tax is the biggest economic resource for the progress of any country. This tax provides money for the development plans of the country. Bringing radical changes in the 70-year-old tax system in the country, five years ago today, the Central Government introduced India’s biggest tax reform, the Goods and Services Tax (GST). Today GST has completed half a decade journey on 30th June.
The government faced many difficulties in implementing GST, businessmen also faced many difficulties in its compliance. During this, many advantages were seen and many disadvantages were also seen, but the biggest thing about it is the use of technology for tax compliance today is the biggest success. Due to this, revenue collection of one lakh crore rupees every month has become a normal thing.
GST Collection
Tax system in four slabs
The nationwide Goods and Services Tax (GST) subsumed 17 local taxes and 13 cesses such as excise duty, service tax and value-added tax (VAT) and was implemented on the midnight of July 1, 2017. There are four slabs in GST, with the lowest rate of tax at 5 per cent on essential goods and the maximum rate of 28 per cent on luxury goods. Other rates of tax are 12 percent and 18 percent.
what was the system before
In the pre-GST era, a consumer had to pay an average of 31 percent tax including VAT, Excise Duty, CST etc. GST saw an unprecedented exercise of fiscal federalism in which the Center and the states came together in the GST Council for smooth implementation of the new tax system.
This time too there will be record collection
The government will release the June GST collection data on July 1. In such a situation, it is estimated that like the last four months, this time too the collection will be up to Rs 1.4 lakh crore. This collection was a record Rs 1.68 lakh crore in April, 2022. The collections crossed the Rs 1 lakh crore mark for the first time in April, 2018.
ease of business
On the fifth anniversary of GST, the Central Board of Indirect Taxes and Customs (CBIC) tweeted, “Several taxes and cesses subsumed in GST. Compliance burden reduced, regional imbalances removed and inter-state barriers removed. This has also increased transparency and overall revenue collection significantly.
Gunjan Prabhakaran, Partner and Leader (Indirect Taxes), BDO India said, “The GST law has evolved over the last five years and many hassles faced by taxpayers have been resolved through time-bound clarifications and amendments.
Rajat Mohan, Senior Partner, AMRG & Associates said, “The GST law has evolved at a rapid pace in five years. Now it seems that this law has entered a new phase where litigation has to be minimized.
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