4 years of GST, Finance Ministry, Tax rates, PM Modi told – Milestone, 4 years of GST, Finance Ministry said – Tax rates decreased, Taxpayers increased, PM Modi told – Milestone
PM Narendra Modi praised GST
- GST was implemented across the country on 1st July 2017.
- PM Modi has praised it on the completion of 4 years of GST.
- Businesses are exempted from tax under GST.
New Delhi : The Goods and Services Tax (GST) regime has completed 4 years. On this occasion, Prime Minister Narendra Modi said that GST has proved to be a milestone in the economic scenario of India. On the other hand, the Finance Ministry said on Wednesday that more than 66 crore GST returns have been filed so far, tax rates have been cut and the number of taxpayers has increased. Nationwide GST was implemented on 1st July 2017 across the country, comprising a total of 17 local taxes like Excise Duty, Service Tax, VAT and 13 Cess.
Under GST, businesses with annual turnover up to Rs 40 lakh are exempted from tax. Additionally, people with a turnover of up to Rs 1.5 crore can opt for the composition scheme and pay only 1% tax. Similarly, businesses with a turnover of up to Rs 20 lakh in a year for services have been exempted from GST. Thereafter, service providers with a turnover of up to Rs 50 lakh in a year can opt for the composition scheme and will have to pay only 6% tax.
Prime Minister Narendra Modi has lauded the GST on the completion of 4 years. He has said that it has proved to be a milestone in the economic scenario of India. In a tweet, the Prime Minister said that GST has proved to be a milestone in the economic scenario of India. It has reduced the number of taxes, compliance burden and overall tax burden on the common man while significantly increasing transparency, compliance and overall collection. #4YearsofGST”
The Finance Ministry tweeted that GST has simplified compliance for all taxpayers and the GST Council has also recommended several relief measures in the wake of the outbreak of the COVID-19 pandemic. The ministry tweeted that it is now widely accepted that GST is both consumer and taxpayer friendly. Higher tax rates before GST discouraged paying tax, however lower rates under GST helped increase tax compliance. So far more than 66 crore GST returns have been filed.
The Finance Ministry said that compliance is improving continuously with around 1.3 crore taxpayers registered under GST.
The Finance Ministry tweeted with the hashtag 4YearofGST that GST lowered higher tax rates. The ministry said the revenue neutral rate recommended by the RNR committee was 15.3 per cent. In comparison, the current weighted GST rate as per RBI is only 11.6 per cent. The ministry further said that GST has transformed the complex indirect tax structure into a simple, transparent and technology driven tax regime, thus uniting India into one market.
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