One Year of GST: A Report Card

One Year of GST: A Report Card

It’s already been a year since the Goods and Services Tax took effect in India. At about this time last year (2017), the entire nation was waiting for a revolution to happen. GST was all set to change the landscape of indirect taxes in India. How far have we gotten with the “One Nation – One Tax” idea? Was it a good idea? Was it a blunder?

Let’s take a look at the first anniversary of our GST – a report card of the how it fared over the last one year.

The GST replaced VAT and Service Tax and aimed to consolidate all indirect taxes into:

  • CGST – Central GST
  • SGST – State GST
  • IGST – Integrated GST

The Good:

  • Helped reduce inflation.
  • Educated businesses about taxes and importance of invoices.
  • Helped clean up black money.
  • Reduced logistics and cross-state consumption costs.
  • Brought all businesses under a single roof in terms of indirect taxes.
  • More people filing tax returns.

 The Bad:

  • Confused businesses about the system.
  • Complex filing with multiple returns.
  • A faulty GST Network ridden with loopholes.
  • Unorganized law implementation.
  • Confusing compliance norms.
  • Exports facing problems with refunds.

The Future?

  • A stronger GST Network and filing platform
  • Lesser returns (probably just one a month)
  • A step-up for Make In India
  • Petrol & Diesel to come under GST?
  • Making fewer slabs.
  • Getting more consumer insights and analytics.

Instamojo Take:

The GST has definitely been a revolutionary change in the way India does business, especially in the MSME segment. But big changes take time to adapt in a country with a business population of over 10 million!

We hope GST filing becomes smoother over the next year and brings in more stability to the process.

Want GST-compliant invoices for your business? Try Instamojo Invoice generator for free and forget about your GST woes!


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5 comments
  1. Hi Rapti, Nice post. “Confused businesses about the system.” – yes taxpayers were so much confused, but i think now its slowly coming on track and i believe, writers like you helped people to understand GST till now.
    Thanks for writing such a superb article on GST.
    Regards
    Jayendra

  2. GST is a beautiful regime that introduced by central gov. Merits are more than demerits and disadvantages slowly be eradicated. Very much helpful to understand the changes.

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