GST has not only increased the indirect tax base but also revealed the hidden face of Indian economy. GST has opened many folds after analyzing the facts and put shocking data in front of India. This is the first time when it is possible to estimate the total exports amount in the states.
Furthermore, how many people are working in the organized sector, this information also revealed by the initial data and it will be helpful for government in policy-making. The GST council can work with authority body in implementing the sensitive pending issues.
The ‘Economic Survey 2017-18’ proposed by the FM, Arun Jaitley in Lok Sabha. The survey says that after GST implementation, the indirect tax base has approximately increased by about one and half times. Until December 2017, approximately 98 lakh traders have registered under the law than previously registered 34 lakh people. Before GST implementation, traders, business, and many companies had registered in different types of taxes, and combining the figure suggest GST has increased the indirect tax base approximately 50%.
The Uttar Pradesh and West Bengal informed about the broadening of tax base and revenue collection growth. It is GST, now the estimation of exports from different states is possible. Five states including Gujarat, Maharashtra, Tamil Nadu, Telangana, and Karnataka export approximately 70% of total Indian exports. The states where international exports and business go well, the living standard is also high.
One more fact revealed now is that top 1% companies in India export only 38% which is low while comparing with 72% in Brazil, 67% in Mexico, 55% in the US, and 68% in Germany. Based on GST data, it is also tried to find out that Indian organized sector covers how much employment scope. According to the estimated report, around 53% out of 24 crore non-agricultural workers are in organized sectors. It is also revealed that the internal market of India is 60% of GDP and it is high than before estimated data.
Read Also: GST E Way Bill Registration Guide on Official Government Portal in India
In the economic survey, the GST, which combined the states and centre, is named as ‘Cooperative Federalism Technology’. The survey says the estimations after GST implementation can be utilized in increasing earnings of the farmers and improving pending issues.
