Post-July 2018 (one year of GST), there has been a genuine effort by the Government and the GST Council, in particular, to cut down on the burden that GST rate has had on the common man’s pocket. While the GST was touted as the Good and Simple Tax, it is now a commonly accepted fact the impact it has had on the Small and Medium scale enterprise has been nothing far from devastating.
While many small businesses have shut down owing to increased compliances, many others are still requesting input tax provisions. However, blaming everything on the GST would still be a childish cry when we consider the fact that for long India has been an ideal ground for tax evasions and government machinery have remained deep sunk in corruption for ages.
Great reforms do bring tremor and such after effects were imminent in Indian GST. A question though still remains if the GST could have been better implemented?. But the Interim Finance Minister Mr Piyush Goyal’s indication towards a possible GST rate reduction if GST revenues increase in future must come as a great relief for one and all at this juncture of time. The officiating Finance Ministers statement comes days after Bihar Deputy Chief Minister Sushil Modi had indicated a possible merger of the 12 percent and 18 percent slabs into single 14-15 percent.
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The Finance Minister made the while Addressing the Lok Sabha post moving four GST Amendment Bills for consideration and passage. These bills include:
- Central GST (Amendment) Bill.
- Integrated GST (Amendment) Bill.
- GST (Compensation to States) Amendment Bill
- and Union Territory GST (Amendment) Bill.
GST is Empowering People
Referring to GST as an honest tax structure that promotes compliance, the standing FM hoped that it will compel people to willfully pay taxes. Referring to the most GST affected textile sector the officiating FM said that most issues had been resolved. He further claimed that textile has become cheaper than before.
The Reductions So Far
Interim FM Mr Piyush Goyal said, “GST Council has reduced rates on many items and services in the last round. We want the consumer to be burdened less by the indirect tax.”
Since inception, GST rates on 400 goods and 68 services have been slashed. So far in July 2018, we have witnessed the biggest rate cuts in GST rates since November 2017. Many items (electronic too) which were earlier part of the 28% luxury slab have been moved to the 18 percent tax bracket. These include items like juicers. Mixer grinders.
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