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

Posted on 1st Jul 2022 by rohit kumar

The five-year journey of the country's biggest tax reform, GST, was completed on June 30, 2022. After the implementation of the GST system on 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, a collection of more than one lakh crore rupees every month has now become a normal thing.

 

 

Earlier had to pay a 31% tax

 

Before the implementation of the GST regime, a consumer had to pay an average tax of 31 percent 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 fiscal 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 the June GST collection will be released on July 1, 2022.

 

It is estimated that like the last four months, this time the collection will be up to 1.4 lakh crores.

 

A record GST collection of Rs 1.68 lakh crore was made in April 2022.

 

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.

The 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 an easy process

 

Commerce Minister Piyush Goyal said on Thursday that the decision to ease the process for intra-state supplies will allow 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.

 

Also Read: New GST Rates: From July 18, packaged flour, milk, and cheese will be expensive, GST on private beds in hospitals too

Other news