ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 10th August. Click Here for more information.
Source: The post Improving GST regime has been created on the article “Creating certainty” published in “The Hindu” on 7th December 2023.
UPSC Syllabus Topic: GS Paper 3- Indian Economy- resource mobilization (taxation)
News: This article discusses the growth in India’s Goods and Services Tax (GST) revenue. The article points to the recent high collections in the GST. It suggests the government should improve GST by addressing issues like tax disputes and including excluded items.
What is the current status of the Goods and Services Tax (GST)?
- GST revenue has seen a significant rise. The collections was nearly ₹3.4 lakh crore in October and November.
- Average monthly GST collection for 2023-24 is approximately ₹1.66 lakh crore.
- Economists predict central GST receipts may exceed budget estimates.
What steps are being taken for the improvement of GST?
- Goods and Services Tax Appellate Tribunal (GSTAT), approved by the GST Council, is being set up to reduce GST case backlogs.
- Plans are underway to include items like petroleum and electricity in the GST framework.
- GST Council has notified the reconstitution of group of ministers (GoM) on rate rationalisation.
What should be done for GST improvement?
Address Taxpayer Appeals: Rapid operationalization of appellate tribunals to resolve the rising number of pending taxpayers appeals against GST levies. These cases have reached nearly 15,000 in number.
Simplify Tax Structure: Work towards restructuring the complex multiple rate system of GST.
Ensure Stability and Predictability: Develop a clear and stable tax regime that provides certainty to investors and taxpayers, enhancing India’s economic environment.
Maintain Focus Post-Elections: Despite potential delays due to upcoming elections, the GST Council should keep deliberating on these improvements to fast-track implementation after the Lok Sabha election.
Terminology used
Goods and Services Tax Appellate Tribunal (GSTAT): It is a key body for resolving GST disputes. It shall be presided over by its President and shall consist of one Technical Member (Centre) and one Technical Member (State). It handles second-level appeals in GST laws, bringing uniformity in decision-making across the country. Its establishment under the CGST Act, it aims for fair and consistent resolution of tax disputes.
Question for practice:
Goods and Services Tax (GST) is seeing significant improvement. Explain. In this backdrop, what further steps can be taken to improve the GST regime?
