new Delhi. The Finance Ministry said on Monday that the tax rate has come down due to Goods and Services Tax (GST) and has also helped in increasing compliance. Apart from this, the number of taxpayers has also doubled to 1.24 crore due to GST. On the first death anniversary of former Finance Minister Arun Jaitley, the ministry said that before GST, people had to pay VAT, excise, sales tax and other taxes for the same goods or services and with this effect the standard rate of tax to 31 percent was.
The ministry said that it has now been proved that GST is favorable for both consumers and taxpayers. Prior to GST, people used to avoid tax payment due to high tax rate. Tax compliance has increased due to lower rates under GST. When GST was implemented, the number of taxpayers covered under it was 65 lakhs. Now its taxpayer base has increased to 1.24 crores.
The GST, which covers about 17 local taxes, came into force on 1 July 2017 across the country. Arun Jaitley was the Finance Minister at that time. The Finance Ministry has said that today we are remembering Arun Jaitley, he played an important role in implementing GST, which is considered to be the most important reform in the history of Indian imprisonment. The ministry said that GST reduced the rate of tax payment. According to the Revenue Neutral Rate Committee, the Revenue Neutral Rate is 15.3 percent. In comparison, the effective GST rate currently stands at only 11.6 percent according to RBI.
Businesses with an annual turnover of Rs 40 lakh have been excluded from the GST ambit. Initially this limit was 20 lakh rupees. Businesses with 1.5 crore annual turnover can opt for the composition scheme. Under this, they have to pay only 1 percent tax.
Ever since GST came into force, the tax rate on many items has come down. At present, 28 percent tax is levied only on luxury and health and environmentally damaging products. The Ministry stated that out of 230 products placed in the 28 percent tax category, about 200 products have been shifted to the low rate category. The housing sector has also been kept in the 5 percent tax bracket, while the tax rate on affordable housing has been reduced to 1 percent. The ministry said that till date a total of 50 crore returns have been filed online and 131 crore e-way bills have been generated.
This post was published on August 24, 2020 1:21 pm
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