'GST milestone in India's economic landscape': PM Modi lauds 4 yrs of tax regime
1 min read 30 Jun 2021, 04:25 PM ISTThe GST regime will complete its fourth year on July 1 this year
PremiumPrime Minister Narendra Modi has praised the Goods and Services Tax (GST) for easing tax burden on taxpayers and increasing transparency over the past four years.
"GST has been a milestone in the economic landscape of India. It has decreased the number of taxes, compliance burden & overall tax burden on common man while significantly increasing transparency, compliance and overall collection," PM Modi tweeted.
The uniform indirect tax regime will observe its fourth anniversary on July 1 thi year. The nationwide GST regime was rolled in 2017 to subsume and replace 17 local levies like excise duty, service tax and VAT and 13 cesses.
The GST regime follows a four-rate structure that exempts or imposes a low rate of tax 5 per cent on essential items and levies the highest tax rate of 28 per cent tax on luxury and sin goods. The other two tax slabs are 12 and 18 per cent. In the pre-GST era, the total of VAT, excise, CST and their cascading effect led to 31 per cent as tax payable, on an average, for a consumer.
Businesses dealing in goods with an annual turnover of up to ₹40 lakh are exempt from the tax. Additionally, those with a turnover up to ₹1.5 crore can opt for the Composition Scheme and pay only 1 per cent tax.
Services providers with turnover up to ₹20 lakh in a year are exempt from GST. Business in the service sector with turnover up to ₹50 lakh in a year can opt for composition scheme for services and pay only 6 per cent tax.
Earlier today, the Finance Ministry listed the achievements of GST regime on the eve of its fourth anniversary. The ministry claimed that over the last four years, 1.3 crore taxpayers have been registered under the GST network, while 66 crore tax returns have been filed.
"The revenue neutral rate as recommended by the RNR Committee was 15.3 per cent. Compared to this, the weighted GST rate at present, according to the RBI, is only 11.6 per cent," the Finance Ministry said.
