The Evolution of GST in India: A Comprehensive Overview
Introduced seven years ago, Goods and Services Tax (GST) has significantly transformed India’s tax system by simplifying compliance, boosting tax revenues, and curbing evasion. Rolled out on July 1, 2017, GST consolidated multiple taxes into a 5-tier structure, streamlining the tax regime.
With the rise in the turnover threshold for registration and reduction in the number of submissions, the number of registered taxpayers has increased to 1.46 crore. The average monthly GST revenues have also shown substantial growth over the years.
Despite challenges like fake invoices and fraudulent registrations, GST has led to improved tax buoyancy and increased state revenues. Notably, GST has lowered taxes on essential items like hair oil, soaps, and electrical appliances, benefiting consumers.
However, the fight against tax evasion continues, with incidents detected in sectors like online gaming and insurance. The establishment of the GST appellate tribunal aims to expedite dispute resolution, further enhancing the efficacy of the system.
As India’s GST ecosystem matures, the focus remains on promoting transparency and compliance. The efforts of organizations like the Institute of Chartered Accountants of India are crucial in navigating the complexities of GST and supporting India’s economic growth.
Published on 30 June 2024, 15:18 IST