One year of GST

one year of gst

Theme :-

  • 1st July is GST (Goods & Services Tax) day. It’s been exactly a year since GST was implemented in 2017.

Aims of GST :-

  • To simplify taxation process by replacing many taxes such as Service, Central excise tax etc. with GST.
  • To eliminate tax evasions. As GST makes the tax system transparent, tax evasions will be eliminated.
  • To increase the number of tax payers. This will have a positive impact on our economy and will reduce the burden of taxes at an individual level.

How far GST is successful :-

  • In this one year, government’s revenue from taxes in increased.
  • When compared to before GST era, now more people are paying taxes and filing returns due to the simplified taxation process.
  • Now, everyone can pay taxes online and can file returns through online as well. This eliminated the process of going to tax offices and helped in improving Ease of doing business in India.
  • Prices of a lot products dropped as a result of transferring GST benefits to customers.
  • As it is now compulsory to issue receipts for purchases worth more than Rs.200, transparency is increased.
  • Since GST is implemented, government’s revenue from taxes is a bit less than 1 lakh crore rupees every month. In April 2018, it is more than 1 lakh crore rupees.
  • Many economists expected that GST will cause inflation in the first year. But it didn’t happen.

Failures :-

  • There is a lot of criticism on not including petroleum products in GST even in the situations of high international crude oil prices. Not just petro products, but electricity and stamp duty are also not brought under GST.
  • Calling GST as ‘One Nation – One Tax’ may not be right yet because there are multiple tax rates. GST is not simple process as it was intended to. World Bank said that India’s GST is the among the most complex GST in the world.
  • Many faced technical issues while going through the online process. Technical department of GST wasn’t equipped well. Especially on the last day of filing returns, many people faced server issues.
  • Many people were confused in the initial days of GST, because tax slabs and allocation of products in tax slabs changed multiple times.
  • Government didn’t put enough efforts on educating people on GST. Still many people do not have enough knowledge on Goods & Services Tax.
  • There is no tribunal to address grievances, as a result people are forced to approach high courts in case of issues.
  • In the initial days, refunds were not issued in time to exporters. RBI report revealed that exports decreased in that particular time due to this issue.
  • There is a criticism in assigning products to tax slabs. For example, luxury item – Gold is under 5% Tax slab. (There are four tax slabs in GST – 5%, 12%, 18% and 28%)

Conclusion :-

Though there were some loopholes, GST is successful as it could increase tax revenue and brought many people under the ambit of tax system. Difficulties are inevitable in the starting days because GST is a big change for people as well as for administration. By solving the present problems, we can make India’s GST the best in the world.

 

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8 comments

  1. Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services.it is firs come into effect on 1st july 2017.1st july is called as gst day.many changes occured in this 1 year.like Long queues of trucks at state borders disappeared as check posts were dismantled, creating a seamless national market. These barriers had restricted movement of goods across the country, leading to huge delays and increasing transaction costs for the logistics sector, eventually translating into higher costs for consumers.
    A consumer in Kanyakumari now pays the same tax on an item as one in Jammu & Kashmir. GST has also allowed businesses to streamline distribution systems—production, supply chain, storage—to make them more efficient, having previously been forced to design them keeping state taxes in mind.
    One of the expected benefits was that GST would encourage formalisation of the economy. Evasion would stop making sense, thanks to transparent digital processes and incentive of input credit and invoice matching.
    There is consensus among experts and industry that GST has made vast progress from its early days of teething troubles. It has settled in as far as the consumer is concerned, but businesses want to see improvement
    There are as many as six slabs, excluding exempt goods. Though most goods fall in the 12%, 18% and 28% brackets, there is a case for merging slabs to reduce complexity and classifi cation disputes. The 12% and 18% bracket could be merged into one single slab in the 14-16% range.
    Undoubtedly, GST has received positive as well as negative responses as befits its characterisation as a toddler. However, further steps will bring out the true sense of One Nation One Tax.in one year only gst acheives so many things. definitly in future it goes very succesful

  2. In my opinion this decision is very good or helpful to each person of india in future . So we have to support GST and make it one of the best tax and services rule ,,…… ?

  3. We cannot give a final opinion on whether GST is successful or not. The issues associated with the failures of GST can be solved. We will see the positive effects after some years.

  4. GST is implemented for the long term… We will see the positive effect of GST after some years when most of the people will have a complete knowledge about GST and tax slabs of GST

  5. GST rates for 29 goods and 53 services have been reduced. These rates will come into effect from 25th Jan. 2018

  6. Now the rupee value is continuosly depreciating day by day,so its the time to bring pertroleum and crude oil under GST.

  7. Now frequently GST council meets and review the situation. Petroleum products to be brought under GST.

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