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
- 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.
- 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.
- 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.
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.
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