GST will improve our competitiveness

GST will improve our competitiveness

News:

Implementation of GST has helped India to improve competitiveness

Important Facts:

Benefits of GST regime:

• GST has for the first time has brought, manufactured goods and services are on the same tax platform and all products and services are subject to the same tax rates throughout the country.
• It has resulted into expansion of tax base and formalization of the economy.
• Average monthly revenues have been on the uptrend over the last 18 months.
• The number of returns filed has gone up from 3.76 million for August 2017 to 7.2 million in December 2018.
• Manufacturers and traders who had remained out of the tax net now become part of the formal supply chain under GST
• New 1.8 million enterprises have been registered under the composition scheme where smaller enterprises pay as per fixed tax rates
• Simplified new return filing model have brought in efficiency in the system.
• GST dismantled inter-State tax barriers for seamless transportation
• Input tax credit refunds are generally quick and regular, streamlining the whole supply chain.

Benefits for consumer

• Tax rates have been reduced on key items, currently most mass consumption goods in the lower categories of tax structure
• Consumer protection through anti-profiteering provisions has ensured that the benefits of input tax credit or reduction in tax rates are passed on to the consumers.

What needs to be done:

• Petroleum products, alcohol, electricity and real estate may be brought under GST ambit for providing seamless input tax credit across sectors.
• The number of rates too can be reduced to just three slabs, standard rates on items of mass consumption, demerit goods in the highest tax category, and certain items at a lower slab.