India is a land of contradictions and complications, especially when it comes to taxes. The myriad range of taxes would drive any sensible individual or business up the wall. No wonder, it took the genius of a Chartered Accountant to make sense of the tax structures. So, when the long awaited GST kicked into action, four years ago, it was hailed as a savior of sorts.
Truly, GST is a Good and Simple Tax. Good because it has brought down tax on various consumer products and Simple because it has replaced the previous complex multiple tax regime into one single tax regime across the country.
The GST regime integrated India into a single market, getting taxpayers rid of the burden of the multiple taxes that they had to pay earlier. It simplified compliance and saved from the hassles caused by different tax regimes in different states.
GST has significantly eased one of the most complex indirect tax systems in the world. A company looking to do business in every state had to make as many as 495 different submissions. Under GST, that number has reduced to just 12.
The multiple markets across India, with each state charging a different rate of tax, led to great inefficiencies and costs of compliance. Under GST, compliance has been improving steadily, with around 1.3 Crore taxpayers registered.
GST has reduced the rate at which people have to pay tax. The revenue neutral rate as recommended by the RNR Committee was 15.3%. Compared to this, the weighted GST rate at present, according to the RBI, is only 11.6%.
GST has made ample use of technology to make the indirect tax regime simpler and more transparent. For example, the GST refund process has been made completely automated since September 2019.
The GST regime has always taken stock of prevailing situations and provided relief and concession wherever needed. Even during the COVID time, the tax rate was decreased on various COVID-related items, and relief was provided on late fees.
India is a land of contradictions and complications, especially when it comes to taxes. The myriad range of taxes would drive any sensible individual or business up the wall. No wonder, it took the genius of a Chartered Accountant to make sense of the tax structures. So, when the long awaited GST kicked into action, four years ago, it was hailed as a savior of sorts.
Truly, GST is a Good and Simple Tax. Good because it has brought down tax on various consumer products and Simple because it has replaced the previous complex multiple tax regime into one single tax regime across the country.
The GST regime integrated India into a single market, getting taxpayers rid of the burden of the multiple taxes that they had to pay earlier. It simplified compliance and saved from the hassles caused by different tax regimes in different states.
GST has significantly eased one of the most complex indirect tax systems in the world. A company looking to do business in every state had to make as many as 495 different submissions. Under GST, that number has reduced to just 12.
The multiple markets across India, with each state charging a different rate of tax, led to great inefficiencies and costs of compliance. Under GST, compliance has been improving steadily, with around 1.3 Crore taxpayers registered.
GST has reduced the rate at which people have to pay tax. The revenue neutral rate as recommended by the RNR Committee was 15.3%. Compared to this, the weighted GST rate at present, according to the RBI, is only 11.6%.
GST has made ample use of technology to make the indirect tax regime simpler and more transparent. For example, the GST refund process has been made completely automated since September 2019.
The GST regime has always taken stock of prevailing situations and provided relief and concession wherever needed. Even during the COVID time, the tax rate was decreased on various COVID-related items, and relief was provided on late fees.
Discussion about this post