6 years of implementing One nation One Tax know journey of GST so far | GST collection increasing rapidly every month, know how was the journey of ‘One Country One Tax’ so far?
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6 years of implementing One nation One Tax know journey of GST so far | GST collection increasing rapidly every month, know how was the journey of ‘One Country, One Tax’ so far?.
Journey of GST: The Goods and Services Tax (GST), the biggest indirect tax reform in the country, has completed six years of implementation and now the monthly revenue of Rs 1.5 lakh crore is back to normalcy. Although new methods of fraud are also being tried in this tax system, but the tax authorities are trying to deal with them. GST officials have also started using data analytics, artificial intelligence (AI) and machine learning to crack down on those creating shell companies on the basis of forged documents to claim Input Tax Credit (ITC). Since the implementation of GST in July 2017, tax evasion is estimated to be around Rs 3 lakh crore through fraudulent means. Out of this, tax evasion of more than one lakh crore rupees has been done in the last financial year 2022-23 only. Research institute Global Trade Research Initiative (GTRI) said that the most needed reform in the GST system is to upgrade its network to prevent fake supplies and bogus claims of ITC.
still have many problems
6 years of implementing One nation One Tax know journey of GST so far | GST collection increasing rapidly every month, know how was the journey of ‘One Country, One Tax’ so far?. GTRI co-founder Ajay Srivastava said data analysis and physical verification alone cannot solve the problem completely. GSTN may be upgraded in such a way that the information provided by the supplier can be matched with the bills raised in the ITC claim. He said that even after six years, GSTN has not been able to add supply related information to the value category. Because of this, the government is suffering huge revenue loss and honest business people are facing problems. Apart from this, no decision has been taken so far on issues like rationalization of GST tax rates and slabs, imposition of GST on petrol, diesel and jet fuel. Tax experts say that the apex body GST Council should implement these reforms to make GST more inclusive. However, in view of the general elections next year, the chances of implementing these reforms are slim.
49 meetings have been held so far
Tanushree Roy, director (indirect tax) at advisory firm Nangia Andersen India, said clarity is still awaited on issues such as online gaming, cryptocurrency-related transactions, EV charging infrastructure and setting up of the GST Appellate Tribunal. The GST Council, headed by the Union Finance Minister, has held 49 meetings since its inception in September 2016. It is the apex body to take decisions regarding policy issues and GST rate. GST was implemented on July 1, 2017 as a nationwide uniform tax system. This included 17 local levies such as excise duty, service tax, VAT and 13 cesses. Monthly tax revenue has crossed Rs 1.5 lakh crore within six years of GST implementation. The revenue in April 2023 was set to reach an all-time high of Rs 1.87 lakh crore. In the initial phase, the average monthly revenue used to be Rs 85,000-95,000 crore. With the steady rise in monthly revenue, GST officials are now paying more attention to nab fraudsters and curb tax evasion. 6 years of implementing One nation One Tax know journey of GST so far | GST collection increasing rapidly every month, know how was the journey of ‘One Country, One Tax’ so far?.
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