1 year of GST: Simple and uniform tax system is still far away

1 year of GST: Simple and uniform tax system is still far away
1 year of GST: Simple and uniform tax system is still far away


Considering the Goods and Services Tax (GST) as the largest reform program of independent India, it is being said that by simplifying the complex direct tax system of the country, uniform tax system has been set up. GST completed one year on June 30 It is being said that the complex tax system has been exhausted in India and a tax system has been created in addition to more than a dozen different types of taxes and many cesses. But GST has not been able to make ideal arrangements till now.

A year's journey of GST was not easy, and the problem and problem remained on the very first day. Although some flaws were resolved due to the activism of the government, some problems like simplification of filing returns and rationalization of taxes have not yet been resolved.

According to Rajiv Kumar, Deputy Chairman of the Policy Commission, "GST has now set a different model in the economy, because people will be under much pressure to register under GST and bring their economic activities to the formal sector." Instead of analyzing the GST one-year journey, it would be more important to understand the future plan.

Many economists argue that there should be universal coverage and single tax system in the ideal GST system, while most people would agree that it is not practical for a country with a major economic inequality like India. The government also has often said that there should not be a uniform tax rate on the BMW car and the slippers.


Six tax rates in GST have been kept at 5, 12, 18 and 28 percent respectively. Apart from this, the tax rate on some items is zero, then three percent tax has been imposed on gold. In this way, India's tax system is the most complex in the world. This matter has been acknowledged by the World Bank in its India Dependency update in its half-yearly report.

According to the report, the worst scenario is that petroleum production, electricity and real estate have been kept separate from the GST. The World Bank said, "The number of taxpayers in India is not the biggest, but the highest rate of GST in Asia is 28 per cent and the second highest rate in the world after Chile."

Immediately after the implementation of the new indirect tax system, the member of the Policy Commission and Chairman of the Economic Advisory Council of the Prime Minister Bibek Debroy said in an interview with IANS, "India is far from ideal GST system and it will not be ideal in the near future." " Facing debentures of maximum three rates of GST on all items, Deborah said that starting from seven rates, India has brought India into a position that the ideal GST can not be made.


With the technical flaws in the GST network portal since the first day of GST on July 1 last year, taxpayers faced difficulties in registering it, due to which the government had to increase the deadline to file returns several times. Due to these flaws, the export refund (return) increased significantly and the exporters had a cash crisis because their capital was stuck.

Although it was possible for traders to get a large share of capital stuck from two days of the 15 days of operation run by the government, but there is still something left. A committee of five ministers has been constituted under the chairmanship of Bihar Deputy Chief Minister Sushil Kumar Modi to facilitate solutions to GST network problems and its functioning.

Policy Commission Deputy Chairman Rajiv Kumar said in an interaction with IANS, "GST is a big and complex task, so it could have been implemented better if it used to think carefully." The apprehension about the GST implementation proved to be true when the GST collection decreased from 92,000 (later revised figure of 95,132) rupees to 83,346 (later revised figure Rs 85,931) in October and 80,808 in November (later Revised figure was 83,716 rupees).

A meeting of the GST Council was held in December for the implementation of e-bill from February for inter-state transport of goods. The e-Well Bill portal had already worsened the day and the government finally had to increase its date of implementation to April 1. The Deputy Chairman of the Policy Commission said that the country like India, which is proud of the IT sector, can not have any excuse for not working on the IT system.

However, on April 1, when e-tech bills were introduced, the infrastructure was completely corrected by removing the technical flaws and running smoothly. Meanwhile, revenue receipts in March crossed the level of one lakh crore rupees, although it also had an impact on the end of the financial year. After this, there was a GST of Rs 94,000 crore more in April.

Kumar said that GST has now come to a standstill and this will greatly encourage economic activities. Finance Secretary Hasmukh Adhia said this week that GST has now entered the smooth phase and compliance to tax is going well. He said that simplifying the tax return form now will be the priority of the government.

Deloitte India's partner Prashant Deshpande said that GST has removed the multi tax system and problems of double taxation, but some issues are still there which needs to be resolved. Deshpande said in an interaction with IANS: "GST can be expanded to include petroleum products, electricity, land, buildings, which are out of its purview according to the old law. Taxes to overcome problems of listing There is a need to reduce the number of categories. "
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