In a collection of tweets, on the primary demise anniversary of former Finance Minister Arun Jaitley, the ministry mentioned earlier than items and providers tax (GST), the mix of value-added tax (VAT), excise, gross sales tax and their cascading impact resulted in excessive normal charge of tax as much as 31 per cent.
“It’s now broadly acknowledged that GST is each client and taxpayer-friendly. Whereas the excessive tax charges of the pre-GST period acted as a disincentive to paying tax, the decrease charges underneath GST helped to extend tax compliance,” the ministry mentioned.
It’s now broadly acknowledged that GST is each client and taxpayer-friendly. Whereas the excessive tax charges of the pre-… https://t.co/jseIgy2lkV
— Ministry of Finance (@FinMinIndia) 1598239806000
The variety of assessees coated by the GST on the time of its inception had been about 65 lakh. Now the assessee base exceeds 1.24 crore.
GST, which subsumed about 17 native levies, was rolled out on July 1, 2017. Jaitley held the finance portfolio within the first time period of the Modi authorities since 2014.
“As we bear in mind Arun Jaitley in the present day, allow us to acknowledge the important thing position he performed within the implementation of GST, which can go down in historical past as probably the most basic landmark reforms in Indian taxation,” the ministry tweeted.
The a number of markets throughout India, with every state charging a distinct charge of tax, led to very large inefficiencies and prices of compliance.
“GST has decreased the speed at which individuals must pay tax. The income impartial charge as per the RNR (Income Impartial Price) Committee was 15.three per cent. In comparison with this, the weighted GST charge at current, in response to the RBI, is barely 11.6 per cent,” the ministry mentioned.
Companies with an annual turnover of as much as Rs 40 lakh are GST exempt. Initially, this restrict was Rs 20 lakh. Moreover, these with a turnover as much as Rs 1.5 crore can go for the Composition Scheme and pay only one per cent tax.
“As soon as GST was carried out, the tax charge on numerous gadgets was introduced down. As of now, the 28 per cent charge is nearly solely restricted to sin and luxurious gadgets. Out of a complete of about 230 gadgets within the 28 per cent slab, about 200 gadgets have been shifted to decrease slabs,” the ministry mentioned.
Additionally, the housing sector has been positioned within the 5 per cent slab, whereas GST on inexpensive housing has been decreased to 1 per cent.
“All processes in GST have been totally automated. Until now 50 crore returns have been filed on-line and 131 crore e-way invoice generated,” the ministry added.