|Introduction: Contextual introduction.|
Body: Explain the benefits of GST.
Conclusion: Write a way forward.
July 1 marks the completion of five years since the Goods and Services Tax (GST) was introduced in our country. It was first discussed in the report of the Kelkar Task Force on indirect taxes in 2003. GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. Benefits of GST:Benefits of GST:
- An intrusive control system, involving border check posts and physical verification of goods-laden-trucks, played havoc resulting in loss of time and fuel. With no such arbitrage under the IGST and with the e-way bills, the logistics supply chain efficiencies have increased manifold.
- Special attention has been paid to the needs of the micro, small and medium enterprises (MSMEs).
- The creation of GSTN for constant review and upgrading of hardware and software capacities have helped in keeping the system quick.
- The system of automated IGST refunds by customs and refund of accumulated input tax credit (ITC) to exporters by the GST authorities has made the neutralisation of input taxes on export goods and services seamless and hassle-free.
- The GST Council has played a crucial role in forging a national consensus on key issues related to the tax regime- rates, exemptions, business processes and movement of input tax credit (ITC) etc.
The cooperation between states and the Union cannot just be an economic compact. It should be a broader political ethic. The union government must resolve to honour the revenue guarantee commitment to the states. The Governments can consider bringing petroleum and electricity under GST ambit that will help prevent cascading and ensure further uniformity.