GST: Five years of GST completed, collection crossed one lakh crore, read what were the advantages and disadvantages after implementation


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The five-year journey of the country’s biggest tax reform, GST, completed on June 30, 2022. After the implementation of the GST system from July 1, 2017, many benefits have been seen. Some damage was also seen. Above all, this system promoted the use of technology in tax compliance. With this, collection of more than one lakh crore rupees every month has now become a normal thing.

Earlier had to pay 31% tax
Before the implementation of the GST regime, a consumer had to pay an average of 31 per cent tax including VAT, Excise Duty, CST etc. To ease the taxation regime, 17 local taxes and 13 cesses like excise duty, service tax and VAT were subsumed in GST.

  • There are four slabs in GST. In this, the lowest rate of tax is 5 percent on essential goods and the highest rate of 28 percent on luxury items.
  • The other two slabs are 12% and 18%.

1.4 lakh crore collection expected in June

  • There was an unprecedented exercise of financial federalism in GST. In this, the Center and the states came together in the GST Council for smooth implementation of the new tax system. As a result of the steps taken in 47 meetings of the Council so far, GST collection of one lakh crores every month has become a new ‘normal’.
  • The data for June GST collection will be released on July 1, 2022.
  • It is estimated that like the last four months, this time too the collection will be up to 1.4 lakh crores.
  • In April, 2022, a record GST collection of Rs 1.68 lakh crore was made.
  • In April 2018, the collection crossed one lakh crores for the first time.

Advantages
On the 5th anniversary, the Central Board of Indirect Taxes and Customs tweeted, “GST has subsumed several taxes and cesses.

  • Reduced compliance burden.
  • Regional imbalance has been removed.
  • Inter-state barriers also ended.
  • There was a rapid increase in transparency and total revenue collection.

challenge
Rajat Mohan, Senior Partner, AMRG & Associates said, “In 5 years, the GST law has entered a new phase.

  • In this, litigation has to be minimized.
  • The conflicting AAR decisions in the states will have to be resolved.

Small businessmen benefit from easy process
Commerce Minister Piyush Goyal said on Thursday that the decision to ease the process for intra-state supplies will give an opportunity to companies to engage in e-commerce. The GST Council has decided to simplify the process for intra-state supplies made through e-commerce platforms. The decision will bring small retailers into the e-commerce ecosystem.

Expansion

The five-year journey of the country’s biggest tax reform, GST, completed on June 30, 2022. After the implementation of the GST system from July 1, 2017, many benefits have been seen. Some damage was also seen. Above all, this system promoted the use of technology in tax compliance. With this, collection of more than one lakh crore rupees every month has now become a normal thing.

Earlier had to pay 31% tax

Before the implementation of the GST regime, a consumer had to pay an average of 31 per cent tax including VAT, Excise Duty, CST etc. To ease the taxation regime, 17 local taxes and 13 cesses like excise duty, service tax and VAT were subsumed in GST.

  • There are four slabs in GST. In this, the lowest rate of tax is 5 percent on essential goods and the highest rate of 28 percent on luxury items.
  • The other two slabs are 12% and 18%.

1.4 lakh crore collection expected in June

  • There was an unprecedented exercise of financial federalism in GST. In this, the Center and the states came together in the GST Council for smooth implementation of the new tax system. As a result of the steps taken in 47 meetings of the Council so far, GST collection of one lakh crores every month has become a new ‘normal’.
  • The data for June GST collection will be released on July 1, 2022.
  • It is estimated that like the last four months, this time too the collection will be up to 1.4 lakh crores.
  • In April, 2022, a record GST collection of Rs 1.68 lakh crore was made.
  • In April 2018, the collection crossed one lakh crores for the first time.


Advantages

On the 5th anniversary, the Central Board of Indirect Taxes and Customs tweeted, “GST has subsumed several taxes and cesses.

  • Reduced compliance burden.
  • Regional imbalance has been removed.
  • Inter-state barriers also ended.
  • There was a rapid increase in transparency and total revenue collection.


challenge

Rajat Mohan, Senior Partner, AMRG & Associates said, “In 5 years, the GST law has entered a new phase.

  • In this, litigation has to be minimized.
  • The conflicting AAR decisions in the states will have to be resolved.

Small businessmen benefit from easy process

Commerce Minister Piyush Goyal said on Thursday that the decision to ease the process for intra-state supplies will give an opportunity to companies to engage in e-commerce. The GST Council has decided to simplify the process for intra-state supplies made through e-commerce platforms. The decision will bring small retailers into the e-commerce ecosystem.

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