GST - Tax Reforms in India

2.  There have been major changes in tax systems of
countries with a wide variety of economic
system and level of development during the last
two decades.
 The motivation for these reforms has varied from
one country to another and the thrust of reforms
has differed form time to time depending on the
development strategy and philosophy of time.
 In many developing countries, the immediate
reason for tax reforms, has been the need to
enhance revenues to meet impending fiscal
crises, as bird(1993) states, ”fiscal crises has
been proven to be the mother of tax reform”.

3.  There have been a number of attempts at
improving the tax system since independence.
The principal objective of these attempts has
been to enhance revenue productivity to finance
large development plans. Although the various
tax reform committees considered economic
efficiency as one of the objectives, the
recommendation do not bear much testimony to
this aspect. The recommendation were in
keeping with the philosophy of the times.
 Further, even when the committees considered
economic efficiency as one of the objectives,
the recommendations do not bear much
testimony to this aspect. The recommendations
were in keeping with the philosophy of times.

4.  The government accepted the recommendation
of the TRC and has implemented them in phases.
Although it did not entirely follow the
recommendations and is yet to implement many
of the measures to strengthen the administration
and enforcement machinery, most of the
recommendation have been implemented.
 It must also be noted that the pace and content
of reforms have not been exactly true to TRC
recommendation.
 As regards the personal income taxes, the most
drastic and visible changes have been seen in the
reduction in personal and corporate income tax

5.  After eight years of tax reforms as already
mentioned, a number of disquieting features in
the tax system still remain. Improving the
productivity of the tax system continues to be a
major challenge in India.
 The tax ration is yet to reach the pre-reform
levels. Although the coverage under income tax
has shown significant improvement, much
remains to be done to reach the hard-to-tax
groups.
 The ration of domestic trade taxes in particular
has continued to decline and this has posed a
major constraints in reducing tariffs which is
necessary to decline and this has achieve
allocation efficiency.

6.  GST is an indirect tax for the whole country,
it will replace several indirect taxes levied
by the Central and State Government.
Indirect taxes such as excise duty, custom
duty, entertainment tax, luxury tax and so on
will be replaced in GST regime. After the
implementation of GST, it will make India
one unified common market.
 GST is a single tax on the supply of goods and
services, credit of input tax paid at each
stage will be available in the subsequent
stage of value addition, which makes GST
essentially a tax only on value additional at
each stage.

7. :
State goods and service tax(SGST) is the tax
that the state government levies on intra-state
goods and service transaction SGST subsumes
earlier taxes such as VAT, entertainment tax,
luxury tax, and purchase tax. UGST-Union
Territory goods and service tax replaces SGST in
union territories like Andaman and Nicobar
islands or Chandigarh.
:
Central goods and service tax(CGST). The
central government levies GST on intra state
goods service transactions. The central
government collects the revenue generated
through CGST. It is levied along with SGST or
UGST.

8. :
Integrated goods and service tax(IGST)
is the tax levied on inter-state goods and
service transaction. It applies to imports and
exports as well. Under IGST, the taxes
charged are shared by both the centre and
state. The SGST part of the tax goes to the
state wherein the goods and services are
consumed.

9.  No Tax Category:
It includes goods like sanitary napkins,
deities made of stone, fresh fruits and
vegetables, etc.
 5% GST:
It includes goods like frozen vegetables,
tea, coffee, spices, etc.
 12% GST:
It includes goods like butter, cheese, ghee,
pickles, etc.

10.  18% GST:
It includes goods like sugar, cornflakes,
pasta, pastries, cakes, etc.
 28% GST:
It includes goods like sunscreen,
panmasala, automobiles, dishwasher, vending
machines, etc.

11.  The utility of something makes it a bane or a
boon just like a gun which may be in the
hands of the soldier or a goon.
 The motive behind implementation of GST is
easing the tax structure which was earlier
existing so that there is easy compliance and
efficient collection of taxes.
 At last the GST is boon for public people but
GST is a bane for the government.

12.  In December, 2022 CGST is Rs.26,711 crore,
SGST is Rs.78,434 crore, IGST is Rs.78,434
and Cess is Rs.11,005 crore Total GST is
Rs.1,49,507 crore.
 In November, 2022 CGST is Rs.25,681 crore,
SGST is Rs.32,651 crore, IGST is Rs.77,103
and Cess is Rs.10,433 crore Total GST is
Rs.1,46,867 crore.
 In October, 2022 CGST is Rs.26,039 crore,
SGST is Rs.33,396 crore, IGST is Rs.81,778
and Cess is Rs.10,505 crore Total GST is
Rs.1,51,718 crore.

13.  In September, 2022 CGST is Rs.25,271 crore,
SGST is Rs.31,813 crore, IGST is Rs.80,464
and Cess is Rs.10,137 crore Total GST is
Rs.1,47,686 crore.
 In August, 2022 CGST is Rs.24,710 crore,
SGST is Rs.30,951 crore, IGST is Rs.77,782and
Cess is Rs.10,168 crore Total GST is
Rs.1,43,612 crore.
 In July, 2022 CGST is Rs.25,751 crore, SGST is
Rs.32,807 crore, IGST is Rs.79,518 and Cess is
Rs.10,920 crore Total GST is Rs.1,48,995
crore.

14.  In June, 2022 CGST is Rs.25,306 crore, SGST
is Rs.32,406 crore, IGST is Rs.75,887 and Cess
is Rs.11,018 crore Total GST is
Rs.1,44,616crore.
 In May, 2022 CGST is Rs.25,036 crore, SGST is
Rs.32,001 crore, IGST is Rs.73,345 and Cess is
Rs.10,502 crore Total GST is Rs.1,40,885
crore.

15.  Most analysis forecast the economy to grow
close to 7.4% in 2017-18, the first tear of GST
rollout, which is slightly higher than 7.1% in
2016-17, but lower than 7.4 in 2015-16 while
GST is unlikely to be a positive for economic
growth in short term.
 GST rates are divided into 5%,12%,18%,28%.
GST will become goods and service tax only
if the entire country works as a whole
towards making it successful.