Do you think as per the international standards, GST which has taken two years to stabilise has really done well in terms of revenue yield? Comment.
Published: July 1, 2019
GST, when launched in India, was a game-changer reform aimed at boosting revenue and also bringing lasting changes to the indirect tax regime of India and also bring in to India an era of increased compliance. It was basically introduced to relieve the economy of the burden of growing taxes which was a great step leading to the formation of the common Indian market. It has taken around 5 years for stabilisation.
As per the international standards, GST has stabilised between 2-5 years. Thus, GST has done very well as in the first 21 months it gave an average monthly revenue of around Rs. 91,334 Crores. The initial phase was not easy and almost all facets of the tax system had to bear the brunt. All compliance parts were later automated along with the implementation. GST has done well on many fronts.
There are no more check-posts of state taxes and standardisation has been introduced in reporting of obligations. The e-way bill system has also further consolidated the whole system. Value chains have also been integrated by the IGST. Tax burdens have reduced and there is no inflation.
Model Questions Category: 058 - Indian Economy Issues Relating to Planning