2024-07-01 18:18:16
“Seven years after the implementation of #GST, tax rates on household items have been reduced, bringing happiness and ease to every household by reducing GST on home appliances and mobile phones,” the finance ministry said in a series of posts on social media platform X.
The GST taxpayer base has been increased from Rs 1.05 crore in April 2018 to Rs 1.46 crore in April 2024, the finance ministry said.
“We have witnessed a substantial growth in taxpayer base and improvement in tax compliance,” said Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes and Customs (CBIC).
The Goods and Services Tax was introduced on July 1, 2017, replacing 17 local taxes.
For instance, food items such as bulk wheat, rice, curd and Indian drinks were taxed at 2.5-4% before GST, but after GST, these items are taxed at zero%. The ministry said that after GST, there has been a saving on many mass consumer goods such as cosmetics, watches, furniture and mattresses, which are taxed at lower rates than before GST. Even items such as mobile phones, televisions, refrigerators, washing machines and electrical appliances, which were taxed at 31.3% before GST, now attract 18% tax under GST. GST has also reduced the tax burden on small taxpayers, the finance ministry added, as taxpayers with a total annual turnover of not more than Rs 2 crore will not be required to file annual returns for the fiscal year 2023-24.
Going forward, rationalising GST rates, removing ITC limits and implementing sector-specific reforms will usher in a new era of GST reforms, experts said. “As we celebrate the 7th anniversary of GST today, the growing positive sentiment in the industry and continued buoyancy in GST collections have laid the foundation for the introduction of forward-looking reforms under GST 2.0,” said Mahesh Jaising, partner, direct tax, Deloitte India.
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