It was the 1st
of July, 2017 when the smoke of ambiguity surrounded the Indian economy. The
Government of India introduced GST in India which raised multiple question as
regards the applicability, implementation and
administration. Since then GST has come a long way. GST had led to the
formalization of the economy, enhanced ease of doing business and benefited
the MSME sector. In April, it was reported that one crore new income tax
returns had been filed and the tax base has increased tremendously. The
government allotted GSTIN to the registered entities/ persons using for whom
they have to file the returns.The Government has categorized goods in 5 tax
slabs, i.e., 0%, 5%, 12%, 28% according to HSN (Harmonized System of
Nomenclature) Codes. Now these rates are being reduced with the increasing tax
base. With the help of technology GST has led to elimination of ‘Inspector Raj’.
The introduction of E-way bills helped in easy movement of goods with less documentation
with higher level of transparency which was not present in the earlier tax
system. But like every coin has two sides, GST has its own pitfalls. The cost
for implementation of new software for the same was high. The administration of
GST is still not proper as the officials administering the same are not well
aware of all the provisions. Hence there are still doubts regarding the return
filing and classifying of goods and services. Apart from these certain
infrastructural and administration issues, we can say GST has come a long way.
Thank You
Regards
Author - Preeti Iyer
Kautilya
IBS Mumbai
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