The tax base has more than quadrupled since 2017 despite ongoing concerns about how the GST regime is being implemented. Despite some early bumps, the one-nation, one-tax system has proven to be a perfect example of cooperative federalism. A single system that combines several taxes and cesses has sped up the formalisation of the black market sector.
Source: The Financial Express
The policy has, appropriately, changed to focus on reducing tax evasion in addition to revenue maximisation. The Centre is currently concentrating its efforts on combating fraudsters who are utilising novel methods to cheat the system.
Reduced false registrations and bills are desired, as well as improved risk management. In the fiscal year 2022u20132023, there was estimated GST evasion of Rs. 1.01 lakh crore. The amount was Rs 3.08 lakh crore between July 2017 and February 2023, of which Rs 1.03 lakh crore was recovered.
Source: The Economic Times
On July 11, the GST Council will have its 50th session, providing an opportunity to reflect back and celebrate the progress made. The fundamental problems that have not been tackled, such as creating the long-overdue GST Tribunal, will also be on the agenda. The tax structure for casinos and internet gambling is still up for debate.
The natural next step after enduring the transitional hiccups and concerns is to enhance the GST system. An extensive examination to lessen conflicts and further simplify legislation is on the industry’s wish list. The affirmation and reassurance of an equitable involvement are crucial for the Centre and the states.
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