SECOND
ANNIVERSARY OF GST ERA IN INDIA
The Goods and Services Tax Act, 2017 came into force
in India with effect from 1.7.2017.
The GST era completed two years on 30.6.2019 and India celebrates GST Second Anniversary on 1st July 2019 in New Delhi.
At the time of launch of GST in India there are only
64.42 lakh taxpayers and migrated to GST regime. At present the number of
registered taxpayers exceeded 1.04 crore i.e. more than 61% of taxpayers have
new registration under GST Act.
The taxpayers were filing only GST return in Common
Portal instead of filing various returns to various Departments to Central
Government and State Government and Union Territories for the following levies.
Central
Excise Duty
|
Duties
of Excise (Medicinal and Toilet Preparations)
|
Additional
Duties of Excise (Goods of Special Importance)
|
Additional
Duties of Excise (Textiles and Textile Products)
|
Additional
Duties of Customs (commodity known as CVD)
|
Special
Additional Duty of Customs (SAD)
|
Service
Tax
|
Value
Added Tax
|
Central
Sales Tax
|
Entry
Tax in lieu of octroi
|
Purchase
Tax
|
State
cesses and Surcharges in so far as they relate to supply of goods and
services
|
The revenue collections from July 2017 to May 2019
(June 2019 yet to be arrived) were given below:
GST REVENUE COLLECTION
IN CRORES
|
|||
Month
|
2017-18
|
2018-19
|
2019-20
|
April
|
New
From
July 2017
|
1,03,459
|
1,13,865
|
May
|
94,016
|
1,00,289
|
|
June
|
95,610
|
||
July
|
92,283
|
96,483
|
|
August
|
93,590
|
93,960
|
|
September
|
93,029
|
94,442
|
|
October
|
95,131
|
1,00,710
|
|
November
|
85,931
|
97,637
|
|
December
|
86,703
|
94,725
|
|
January
|
86,318
|
1,02,503
|
|
February
|
85,174
|
97,247
|
|
March
|
89,885
|
1,06,677
|
|
The GST revenue collections increases and exceeds
more than one lakh crores in certain months.
India celebrates GST Day
2019 – GST : One Nation, One Tax on the 1st July 2019, i.e., the Second
Anniversary of GST in New Delhi.
The Press Release issued by the Central Government is
given below for ready reference:
Press Release
Subject: – GST Day 2019 - ‘GST: One Nation, One Tax’ – reg.
Goods and Services Tax (GST) was launched on the 1st
July, 2017 in a majestic ceremony held in the Central Hall of Parliament on the midnight of 30th June,
2017. Hence, the Government alongwith partners from the trade and industry is
celebrating the 2nd Anniversary of GST on 1st July 2019.
2. The main function would be held on 1st July 2019 in New Delhi and be presided over by
the Hon’ble Union Minister of
Finance and Corporate Affairs Smt. Nirmala Sitharaman who is also the Chairperson of the GST Council. Hon’ble Minister of State for
Finance, Shri Anurag Singh Thakur would also grace the occasion as the Guest of Honour. Dr. Ajay Bhushan Pandey, Revenue Secretary,
Chairman CBIC, Members of
CBIC, Secretaries and senior officers of various Ministries of Government of India and others shall be present. Senior functionaries of the apex chambers of commerce and industry would also be present in large numbers. Similar functions are being held across the country in all States and Union Territories.
3. The implementation of GST has not been without challenges especially in the early months. But thanks to
the cooperation of the Trade and Industry and the
yeoman service rendered by the GST
authorities of the States and the
CBIC, these challenges have been overcome and
GST has now settled down. Hence, the Government is commemorating the true spirit of Growing and Sharing Together (GST).
4. During the event
a
book on “GST for
MSME” will be released. The distinguished officers of CBIC who have put
in hard work in the implementation of GST will also be awarded with ‘GST Commendation Certificates’ by the Hon’ble Union Minister of Finance and Corporate Affairs.
5. Some advantages of GST:
Simplified Tax
Structure:-
Reduction in cascading effect of
taxes, transparent and has harmonization of laws and procedures.
Easy Compliance:- compliance burden has come down
with one pan- India tax replacing multiple taxes and automated processes.
Promoting Trade and Industry:- Seamless flow of
tax credit.
Spurring Economic
Growth:- Creation of unified common national market.
6. Some developments during the GST journey since 2017:
Subsuming
of
taxes:- It was new experience of subsuming 17 different types of taxes under GST.
Pre – GST,
Trade & Industry had to
undergo compliances under Central Excise, Service Tax & VAT and doing business in multiple states involved adhering to different VAT laws, compliance through different portals and answering to different authorities. All that has been unified into a single robust online system. Starting up has become simple with one-stop online GST
registration for wanting to
do business anywhere in the country.
Formalization of
economy: -
More and more businesses moving in the formal economy is evident from the significant increase in the GST taxpayer base. Moving to the formal economy has brought in more visibility and hence more opportunities for Trade and Industry.
State borders :
- The State boarders’ glitches and delays have come down significantly. Due to different VAT
laws in different states, inter-state transactions were a
pain for Trade and Industry. CST charged on inter-state transactions were an additional cost with no input-credit available and thousands
of productive hours were wasted at state border crossings. Cost and time of
doing inter-state transactions have come down significantly after implementation of E – way bill.
Rate Rationalization: - Major changes in the Tax rates of various items whereby 28% items pulled to 18%, 18%
items pulled to 12% &
12% items pulled to
5%. Further various essential goods were made tax free. Mostly goods are unbranded and manufactured by MSMEs. The reduction in
almost all the cases has been from the higher to the immediately lower tax slab (whether from 12% to 5%
or 18% to 12%)
and involves indigenously processed foods, man-made textile yarn, stationery and other job-work items.
• Return filing: -
The
original concept of four Tax returns in a month (GSTR-
3B, 1, 2 & 3) was gradually curtailed to two tax returns viz: GSTR-3B & 1. Further the Govt. extended due dates for filing tax returns as and when felt necessary. Quarterly Returns were also prescribed for small taxpayers. Reduction in the late fee payable for delay in filing tax returns from Rs 200/- per day to Rs 50/-per day /Rs 20/- per day. For
the Trade and Industry whose
turnover was
turnover below five crores, quarterly return filling system is proposed. This will benefit 93% of the taxpayers, reduce their compliance burden and increase ease of doing business.
• Exports & Refunds: -
Exports are made possible on the basis of Bond/LUT and without
payment of IGST tax. A major package for exporters / merchant exporters has been announced after discussions with various
Export Promotion Councils &
organizations like FIEO, APEC, GJEPC, EEPC, Handicraft EPC etc. Refund
Fortnights were conducted on 15th March to
31st March, 2018, 31st May to 14th June, 2018 and 16th July to 30th July,
2018.
• GST
Law Amendment Act, 2018 : - In its 28th meeting of GSTC
held in New Delhi on 21.07.2018,
the GST
Council recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the
GST (Compensation to States) Act. In order to ensure that
the changes in the Centre and the State
GST laws are brought into force simultaneously, these amendments are made effective from 01.02.2019.
• MSME support
and outreach
programme : - With effect from 2nd November 2018 GST Help desks were created by CBIC at 80
places all over the India to support MSMEs and hand holding of MSMEs was done with regard to GST Registration / Return Filing / Refunds / E – way bill etc.
7. Further reforms in current fiscal (2019-20):
New return system: - Introduction of New Return System on trial basis from
01.07.2019 and on mandatory basis from 01.10.2019. SAHAJ & SUGAM Returns for small taxpayers are proposed
Single Cash Ledger :
- Rationalization of Cash Ledger in such a manner that earlier 20 heads are merged into 5 major heads .There is only one Cash Ledger for Tax , interest, penalty, fee & others .
Single Refund Disbursing
:-
The Central or State Government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and Cess.
Threshold limit for goods: -
Threshold Limit of Rs. 40 Lacs is offered of suppliers of goods as per the choice of States.
Composition Scheme for Services: - Composition Scheme for small service providers up to annual turnover of
Rs 50 lacs with a tax rate of 6%
E-invoicing system: -
electronic invoicing system in a phase-wise manner for B2B transactions is proposed to be introduced.
GSTAT:
- GST Appellate Tribunals are being established at various State
Headquarters and area benches also.
8. The introduction of GST is truly a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology–driven tax regime. It has integrated India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of
doing business and provide an impetus to ‘Make in India’ campaign.
Please remember that “A nation is made when taxes are paid”.
PRESS RELEASE REGARDING GST DAY CELEBRATION HELD ON 1.9.2019
Press release on conclusion
of GST DAY, 2019, dated 1st July 2019
Venue: Dr. Ambedkar
International Centre, New Delhi – 110001.
On 1st
of
July, 2019, the Hon’ble Union Minister of State for Finance, Shri Anurag Singh Thakur presided over the ‘GST Day’ celebrations organized by the CBIC in
New Delhi.
2. Dr. Ajay Bhushan Pandey, Revenue Secretary, Sh. P.K. Das, Chairman CBIC,
and Shri John Joseph Members of CBIC graced the occasion. Senior officers of various Ministries of Government of India,
senior officers of CBIC, senior retired
officers
of
CBIC, the representatives of all
major Trade and industry
associations
were
present in large numbers.
3. On
this occasion, Union Minister of State for Finance granted
Commendation Certificate to 30 CBIC Officers from various formations across the
country for their valuable contribution in the administration of GST. He also released
a book on “GST
for MSME” by CBIC.
4. Speaking on the occasion, the Hon’ble Minister of State Finance Shri Anurag Singh Thakur stated that “GST has been a game changer for all
stakeholders in the economy. Prior to GST, in the constitutional
scheme, taxation
power with Central Government on goods was limited up to
the
stage of manufacture and production, while States
had
power to tax
sale
and purchase of goods. On the other hand, the Centre had the exclusive power to tax services.
This sort of
division of taxing powers created a grey
zone which led to legal disputes since
determination of what constitutes a goods
or
service became increasingly difficult to synergise central, state and local area levies. In GST the transition had been to levy taxes on supplies, and mechanisms to be brought in place in such a way that burden of GST does not fall on business but on the end consumption. By
subsuming more than a score of indirect taxes under GST, the road to a harmonized system of indirect tax has been paved to make India
an
economic union, which has also significantly contributed towards higher efficiency and competitiveness”.
5. The Hon’ble MoS further added that our Hon’ble Prime Mister has rightly
called GST as Good and Simple Tax .It is a
shining example of GST having made India a true common market is that the transport time and cost of
moving goods across the length and breadth of the country
have come down significantly. There
are
so many other positives that do not need reiteration”. He has stated that all the
decisions taken in GST Council are on consensus basis .He called upon all Officers
to make GST in India the best GST available in the world. He has stated that the
CBIC has done very good job for MSME sector. The NACIN has conducted GST training for all Officers apart
from the support given to GST Practitioners .He has cautioned about
fake invoices in GST bring bad name and urged the leaders of
Industry to take corrective steps . Adding his concern over fake invoice menace, he
added that “IMANDAR TAXPAYERS SE BAIR NAHIN, FAKE INVOICES
WALON KI KHAIR NAHIN”. He summed up GST to be a
WIN-WIN situation for all the stakeholders associated with the best tax GST.
6. Sh. P.K. Das, Chairman CBIC, welcoming all stated that the introduction of GST was a revolutionary step not only for the trade &
industry, but also for all CBIC
officers as well . GST through dual (Centre & State)
administration lays the road map to achieve the goal of ‘
one
Nation , one market and one tax’ for sincerely making Indian economy stronger than before . he further added that CBIC had been
releasing SoPs , FAQs about various concerning provisions like TDS, Anti- Profiteering etc , and will continue to take
such measures
as
and when required .
7 Speaking on the occasion the Shri Ajay Bhushan Pandey, the Revenue
Secretary stated that GST is an excellent example of federal cooperation . There
are 1.2 Cr tax payers who have registered on GSTN. Around 70 lakh tax payers
regularly file returns and an amount of Rs
1 lakh Cr of tax
is paid online .He further stated that the return
filing process
, refund sanction procedure ,
multiple ledger
have been streamlined .
The e-invoice is proposed to be released which will streamline return filing process. He called upon the officers that on this Day we should remember what can be further done for trade facilitation .
8 Proposing vote of thanks, Shri John Joseph, Member (Tax Policy) thankfully assured all speakers that “CBIC aspires to improvise tax administration with the
changing requirement of times” and further assured that “whatever extra mile is
required to work to address the challenges, our endeavour would be to keep
improving the tax administration
to meet the challenges”.
The event ended with the thanks to all present at the occasion.
-------
*****