Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


GST Anniversary: What has been done and what still remains

Author: Radhika Verma & Apoorva Jayasimha/Wednesday, July 4, 2018/Categories: TRACKING THE GST

GST Anniversary: What has been done and what still remains

The Goods & Services Tax (GST) regime, which was launched at the stroke of midnight on June 30, has completed a year of implementation and a lot still remains to be done.

Before this remarkable launch, India’s most touted tax reform was incipient for 17 years and yet the beginning of the journey was a rough one.

Several sections of trade ran up for strikes and protests in the initial months. To address the woes of businesses, the apex decision making body on GST — the GST Council — met 27 times in the past one year and took several decisions.

Decisions such as increasing the threshold limit for composition scheme for traders, manufacturers and restaurants from Rs 50 lakh to Rs 1.5 crore helped in expanding the tax payer base from half- million to one million.

A rate slash came as a Diwali bonus when taxes were reduced in 178 items from 28 per cent to 18 per cent.

Businesses also suffered from high compliance costs from reverse charge mechanism, under which registered dealers are required to make tax payments in case they procured goods or services from unregistered businesses. Businesses were frenzied to determine the right classification of goods or services which were supplied by unregistered businesses and pay the tax at suitable rates. Finally, the GST Council exempted reverse charge mechanism on such procurements which is now further extended till September 30 of this year.

While a lot seems to have been done in the debut year, there is a lot to do even now.

Congratulating the people of India on GST’s first anniversary, Prime Minister Narendra Modi said milk and Mercedes cannot be in the same tax slab. But the current 5-tax slab system for GST in India is quite complex.

The government also has to simplify the return filing process which remains burdensome even after temporary suspension of the GSTR 2 and GSTR 3 forms. The online GST portal should stabilise and align with the legislation. The government also needs to take some measures for refund of tax credit to the exporters.

The GST was aimed to reduce the cascading burden of tax, which it did by subsuming multiple levies. However, exclusion of essential items from GST such as electricity, petrol, diesel and real-estate has led to issues related to input tax credit.

As the nation celebrates GST anniversary, we hope the government will take measures with the same fervor and keenness as it did in the maiden year to make GST a “Good and Simple Tax”.

The authors are CA with IncoFirm

Print Rate this article:
No rating

Number of views (377)/Comments (0)

rajyashree guha

Radhika Verma & Apoorva Jayasimha

Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free