The Ministry of Finance tweeted that GST has lowered the rate at which citizens had to pay taxes and helped
to increase compliance and double the tax base to 1.24 crore.
The rate at which people have to pay taxes has been reduced by GST. The revenue neutral rate of the RNR (Revenue Neutral Rate) Committee was 15.3%.Compared to this, according to RBI the weighted GST rate currently is only 11.6%.
Businesses with annual turnover of up to Rs 40 lakh are GST exempt. This limit was initially Rs 20 lakh. In addition, those with a turnover up to Rs 1.5 crore may opt for the Composition Scheme and pay only 1% tax. Once the Goods and Service Tax was implemented, the tax rate on a large number of items was lowered.
As of now, the rate of 28% is solely restricted to sin and luxury goods. Out of a total of about 230 items in the 28% slab, some 200 items have been moved to lower slabs. The housing sector was placed on a 5% slab, while the Goods and Service Tax on affordable housing was reduced to 1%.
All Goods and Service Tax processes have been fully automated. Till now, 50 crore returns have been filed online and 131 crore e-way bills have been generated.
The combination of value added tax ( VAT), excise, sales tax and its cascading effect resulted in a high standard tax rate of up to 31% before goods and services tax.
GST is now widely accepted as being consumer-friendly, as well as taxpayer-friendly. Although the high tax rates of the pre-GST era were a disincentive to paying tax,the lower Good and Service Tax rates helped to improve tax compliance
Recent Post:-
- GST Mechanism between Centre & States: Payments & Dispute!
- Implimentation of Form 26AS of Income Tax
- Opinion | Faceless Assessment – towards realizing vision of ease of business
- RBI moves to prevent misuse of bank funds
- GST Updates – Gst Portal Now More Robust, upto 300k Users!