INSUBCONTINENT EXCLUSIVE:
On the first anniversary of Goods and Services Tax (GST), Union minister Arun Jaitley hailed the legislation as a 'historic' and 'game
He praised GST for additional tax revenue collection, which rose to Rs 8.2 lakh crore in the first nine months
Mr Jaitley also praised it for a 14 percent rise in the tax base of states
While acknowledging the initial teething troubles relating to technological infrastructure, Mr Jaitley said that the systems (used for
filing of tax returns) are better now
"The IT system after initial teething trouble is functioning much better," said Mr Jaitley.However, he outrightly refuted the idea of single
The population profile of India, and other places such as Singapore, where single GST tax slab is applicable, are very different, said Mr
Jaitley on Sunday in a post on Facebook
Even Prime Minister Narendra Modi ruled out the idea of single tax reform, reported news agency Press Trust of India
A single slab GST can function only in those countries where the entire population has a similar and a higher level of paying capacity
Being fascinated by the Singapore model is understandable but the population profile of a state like Singapore and India is very different
Singapore can charge 7 percent GST on food and 7 percent on luxury goods
Will that model work for India, he asked.Ease Of Doing Business: He said that GST has enabled a seamless flow of goods and services
nationwide that made 'Doing of Business' simpler
Mr Jaitley said the GST is expanding the tax base of the less developed consuming states significantly, which will provide more resources
for them to devote for development purposes
One nation one tax adage came true as one single tax replaced 17 taxes and multiple cesses that are imposed by the Central and the State
Governments.The Way Forward: While shedding light on the changes that GST should incorporate in near future, he said the the way forward
includes further simplifying and rationalizing the rate structure and bringing more products into the GST
He expressed confidence that once revenue stabilizes and the GST settles, the GST Council will look into these carefully and act
judiciously, he added in the facebook post.Revenue Share Of States: Arun Jaitley said that the states today are getting a 14 percent
increase on the tax base of fiscal 2016 with the help of the compensation cess
Eventually, when the blocked IGST is gradually released to the Centre and the States, even without the compensation cess, most States would
cross the 14 percent growth target
Even today the compensation requirement are minimal and the current level of compensation cess about Rs.7000 crores monthly is more than
adequate to ensure that the States are compensated for any loss of revenue.Revenue Collection Jumped: In the first nine months, the total
amount collected is Rs 8.2 lakh crore, which would become Rs 11 lakh crore if annualised, yielding a revenue growth of 11.9 percent i.e
a tax buoyancy of 1.22, which has historically been achieved very rarely for indirect taxes and despite rates being lowered for consumers.