‘GST: One nation, One tax’ the supremely historic
indirect tax regime will be just one year old with 30 June of this year and it
is good to have a survey of what it has done to the nation, particularly when
there will be Parliamentary elections in just one year; it is a sort of
performance assessment as to the validity of the big tax reform since many of
the opponent camps did not welcome it.
department however has done the job and has released key benefits under the new
much discussed regime.
Ease of doing business
According to the Revenue Department, GST has provided
benefits to the small-taxpayers. Notably, under the GST, tax payers with an
aggregate turnover in a financial year up to Rs.10 lakhs are exempt from tax.
(Aggregate turnover shall include the aggregate value of all taxable and
non-taxable supplies, exempt supplies and exports of goods and/or services and
exclude taxes viz. GST.). Further, the GST has helped to improve the ease of
doing business due to common national market.
Decrease in inflation
According to the government, GST has led to a decrease
in inflation due to the reduction in cascading effect of taxes and overall
reduction in prices. With an intent to curtail the inflation, the Government
has taken various measures under the new regime including finalization of rates
which are aligned to existing rate structure for most items and introducing an
anti-profiteering clause in the GST law.
Decrease in black transactions
Due to the ‘non-intrusive’ and transparent tax system,
the GST has led to a reduction in black transactions, according to the Ministry
of Finance. Notably, GST is a self-regulating on-line tax system.
Boost to Make
The government’s initiative of Make In India has also
received a big boost under GST, as IGST provides protection to the domestic
industry. Further, certain taxable supplies are taxed at the rate of 0%
rather than at the standard rate of 15%, in case of export related businesses.
More informed customers
The ministry of finance states that GST has led to
more informed consumers due to the simplified tax regime, and the reduction in
multiplicity of taxes.