Goods and Services Tax (GST) has been praised by the Finance Ministry which marked 7 years of its incorporation and mentioned that the same has drawn relief to the households via diminishing the taxes on significant items such as household appliances and mobile phones.
Established on July 1, 2017, GST replaced around 17 local taxes and cesses. This year’s GST Day theme is “Sashakt Vyapar Samagra Vikas” (Empowered Trade Overall Growth).
The finance ministry emphasized that the decrease in tax rates on household goods following the implementation of GST has brought joy and relief to households.
In a post on the social media platform X (formerly Twitter), the ministry stated, With reduced tax rates on household goods after GST implementation, #7yearsofGST has brought happiness and relief to every home through lower GST on mobile phones and household appliances.
Since its start GST Taxpayer has been expanded effectively, attaining 1.46 crore in April 2024 from 1.05 crore in April 2018. With the rectified compliance, Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal mentioned, we have seen a rise in the number of taxpayers.
Comparative charts that the ministry disclosed indicate that the GST has made a living more comfortable by reducing the expenses on food items and mass consumption goods. Under GST there is no tax on food items like unpacked wheat, rice, curd, and lassi, which previously fronted taxes of 2.5-4 per cent.
Also, under the old excise and VAT regime, the tax from 28% has been reduced to 18% on household goods including wristwatches, sanitary plastic ware, doors, and windows, furniture, and mattresses. Previously essential electronics like mobile phones, TVs up to 32 inches, refrigerators, washing machines, geysers, and fans were taxed at 31.3% but these are now counted under the 18% GST slab.
Decreased compliance load for the small taxpayers was highlighted by the ministry. GST council suggested the exemption of the annual return filing need for the assesses with an aggregate annual turnover of up to Rs 2 crore in FY 2023-24.
The Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme has reduced the annual number of tax returns filed from 24 to 8 for over 44 lakh small taxpayers. In addition, the Invoice Furnishing Facility (IFF) has assured a streamlined flow of Input Tax Credit (ITC).
GST enactment has simplified the tax structure, fostering growth and compliance, and providing tangible advantages to households and businesses. Finance ministry lauds GST says it reduced tax rates on household goods, brought relief to every home