New Delhi: Appreciate taxpayers for enforcement measures in tackling GST frauds, Finance Minister Nirmala sitharaman said on Thursday that increased revenue collection in recent months should now be the “new normal”.
In a message to tax officials on the fourth anniversary of the historic tax reform GST, he said the taxpayer base has almost doubled from 66.25 lakh to 1.28 crore in the last four years.
She said that in eight consecutive months, GST revenue has crossed Rs 1 lakh crore and we have seen a record GST revenue collection of Rs 1.41 lakh crore in April 2021.
He said, “The commendable work has been done in the field of both facilitation and enforcement with several fraud cases in the last year ITC is being registered. The increased revenue collection in recent months should now be the ‘new normal’,” Sitharaman said.
A nationwide GST, consisting of 17 local levies such as excise duty, service tax and VAT and 13 cess, was launched on July 1, 2017.
Expressing satisfaction over most of the GST implementation challenges, including the two waves of the COVID-19 pandemic, the Minister thanked taxpayers for their support in making the Goods and Services Tax (GST) a reality.
“Its positive externalities such as integrated markets, removal of cascading and impact[roved competitiveness of goods and services has helped spur economic growth taking us further on the path to prosperity,” she said while commending both the central and state tax officers for making GST a success.
Central Board of Indirect Taxes and Customs (CBIC) will issue appreciation certificates to 54,439 GST payers for timely filing of returns of GST and cash payment of GST in the last four years. More than 88 percent of these taxpayers are from micro, small and medium enterprises.
He said that in a country as large and diverse as India, any reform of this scale can be extremely challenging.
“The GST Council Has shown immense foresight and wisdom in addressing the legitimate concerns of the taxpayers and citizens by making corrections whenever necessary. This is manifested not only in measures to reduce the compliance burden on taxpayers, especially MSMEs, but also in measures to reduce the tax burden on the common man,” Sitharaman said.
Under GST, businesses with an annual turnover of up to Rs 40 lakh are exempted from GST. Additionally, people with a turnover of up to Rs 1.5 crore can opt for the composition scheme and pay only 1 per cent tax.
For services, businesses with a turnover of up to Rs 20 lakh in a year are exempt from GST. A service provider having a turnover of up to Rs 50 lakh in a year can opt for composition scheme for services and pay only 6 per cent tax.
A four-rate structure under GST that exempts or levies a lower rate of tax of 5 percent on essential goods and a top rate of 28 percent on cars. The other slabs of tax are 12 and 18 per cent. In the pre-GST era, an average of 31 per cent tax was payable to the consumer from the total VAT, Excise Duty, CST and their wider implications.
The GST also represents an unprecedented exercise in fiscal federalism. The GST Council, which brings together the central and state governments, has met 44 times to discuss how the tax will work.
In a message to tax officials on the fourth anniversary of the historic tax reform GST, he said the taxpayer base has almost doubled from 66.25 lakh to 1.28 crore in the last four years.
She said that in eight consecutive months, GST revenue has crossed Rs 1 lakh crore and we have seen a record GST revenue collection of Rs 1.41 lakh crore in April 2021.
He said, “The commendable work has been done in the field of both facilitation and enforcement with several fraud cases in the last year ITC is being registered. The increased revenue collection in recent months should now be the ‘new normal’,” Sitharaman said.
A nationwide GST, consisting of 17 local levies such as excise duty, service tax and VAT and 13 cess, was launched on July 1, 2017.
Expressing satisfaction over most of the GST implementation challenges, including the two waves of the COVID-19 pandemic, the Minister thanked taxpayers for their support in making the Goods and Services Tax (GST) a reality.
“Its positive externalities such as integrated markets, removal of cascading and impact[roved competitiveness of goods and services has helped spur economic growth taking us further on the path to prosperity,” she said while commending both the central and state tax officers for making GST a success.
Central Board of Indirect Taxes and Customs (CBIC) will issue appreciation certificates to 54,439 GST payers for timely filing of returns of GST and cash payment of GST in the last four years. More than 88 percent of these taxpayers are from micro, small and medium enterprises.
He said that in a country as large and diverse as India, any reform of this scale can be extremely challenging.
“The GST Council Has shown immense foresight and wisdom in addressing the legitimate concerns of the taxpayers and citizens by making corrections whenever necessary. This is manifested not only in measures to reduce the compliance burden on taxpayers, especially MSMEs, but also in measures to reduce the tax burden on the common man,” Sitharaman said.
Under GST, businesses with an annual turnover of up to Rs 40 lakh are exempted from GST. Additionally, people with a turnover of up to Rs 1.5 crore can opt for the composition scheme and pay only 1 per cent tax.
For services, businesses with a turnover of up to Rs 20 lakh in a year are exempt from GST. A service provider having a turnover of up to Rs 50 lakh in a year can opt for composition scheme for services and pay only 6 per cent tax.
A four-rate structure under GST that exempts or levies a lower rate of tax of 5 percent on essential goods and a top rate of 28 percent on cars. The other slabs of tax are 12 and 18 per cent. In the pre-GST era, an average of 31 per cent tax was payable to the consumer from the total VAT, Excise Duty, CST and their wider implications.
The GST also represents an unprecedented exercise in fiscal federalism. The GST Council, which brings together the central and state governments, has met 44 times to discuss how the tax will work.
.