GST reduced tax rates, doubled taxpayer base to 1.24 crore: Finance Ministry

The Finance Ministry on Monday mentioned GST has lowered the speed at which individuals must pay tax, helped improve compliance and doubled taxpayer base to 1.24 crore. In a collection of tweets, on the primary loss of life anniversary of former Finance Minister Arun Jaitley, the ministry mentioned earlier than items and providers tax (GST), the mixture of value-added tax (VAT), excise, gross sales tax and their cascading impact resulted in excessive customary charge of tax as much as 31%. It’s now extensively acknowledged that GST is each shopper and taxpayer-friendly. Whereas the excessive tax charges of the pre-GST period acted as a disincentive to paying tax, the decrease charges underneath GST helped to extend tax compliance, the Ministry mentioned. The variety of assessees lined by the GST on the time of its inception have been about 65 lakh. Now the assessee base exceeds 1.24 crore. GST, which subsumed about 17 native levies, was rolled out on July 1, 2017. Jaitley held the finance portfolio within the first time period of the Modi authorities since 2014. As we bear in mind Arun Jaitley at this time, allow us to acknowledge the important thing position he performed within the implementation of GST, which is able to go down in historical past as one of the crucial basic landmark reforms in Indian taxation, the Ministry tweeted. The a number of markets throughout India, with every state charging a special charge of tax, led to very large inefficiencies and prices of compliance. GST has lowered the speed at which individuals must pay tax. The income impartial charge as per the RNR (Income Impartial Charge) Committee was 15.three%. In comparison with this, the weighted GST charge at current, in keeping with the RBI, is barely 11.6%, the ministry mentioned.Companies with an annual turnover of as much as ₹40 lakh are GST exempt. Initially, this restrict was ₹20 lakh. Moreover, these with a turnover as much as ₹1.5 crore can go for the Composition Scheme and pay just one per cent tax. As soon as GST was applied, the tax charge on a lot of objects was introduced down. As of now, the 28% charge is nearly solely restricted to sin and luxurious objects. Out of a complete of about 230 objects within the 28% slab, about 200 objects have been shifted to decrease slabs, the ministry mentioned. Additionally, the housing sector has been positioned within the 5% slab, whereas GST on reasonably priced housing has been lowered to 1%. All processes in GST have been absolutely automated. Until now 50 crore returns have been filed on-line and 131 crore e-way invoice generated, the Ministry added.

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