Goods and Services Tax: Union Finance Minister Nirmala Sitharaman on Saturday mentioned Goods and Services Tax (GST) has strengthened the revenue buoyancy of states, and the all-around benefit stands out as “exemplary”.
The multiplicity of taxes within the pre-GST regime resulted in a “tax-on-tax” impact, inflicting the identical product to be taxed a number of occasions and therefore changing into costlier for the customers, she mentioned on the GST Day 2023.
Giving a comparability of the tax charges pre and post-GST, Sitharaman mentioned, “GST has done justice to the consumers by bringing the rates down compared to the previous regime”.
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‘India’s oblique tax system was fragmented earlier than GST’
Before GST was launched, India’s oblique tax system was fragmented, the place each state was successfully a definite marketplace for the business as effectively as the patron.
“Whether it is common consumer, whether it is the state government, a matter of tax buoyancy, whether it is making it digital and simpler, GST stands out as an exemplar,” Sitharaman mentioned.
State revenue buoyancy pre-GST was 0.72, whereas post-GST, it’s 1.22. “GST has brought in greater buoyancy. Therefore, both Centre and state benefit. Today, no state’s (revenue) suffers post GST,” Sitharaman added.Â
