Goods and Services Tax: Faulty by design
2 years, 5 months ago

Goods and Services Tax: Faulty by design

The Hindu  

Published : Jul 10, 2022 18:00 IST Five years ago, India began its tryst with a brand new tax, one that promised deliverance to all Indians. The GST design revolves around the concept of a single unified tax replacing two sets of taxes in force until then: one was sacrificed by the Centre and the other by the States. Studies on the impact of GST have shown that the realisation of revenues from sales tax—and the value added tax that replaced it—actually fell in several States. The measure of States’ own tax revenues as a proportion of GSDP has been remarkably stagnant, hovering around 6.6 per cent for all States put together between 2013-14 and 2020-21. The unfairness of the situation is underlined by the fact that while the States have lost the only significant tax lever they had before GST, the Centre has had other options to boost revenues.

India Design Tax Taxes States Gift Indian Sales Centre Cent Modi Five Years Indians Sales Tax Gst Gva Vat Frontline Gsdp Revenues Tax Revenues Proportion Petroleum Products Gst Revenues Significantly Smaller Units  faulty  sales  cent  goods  services  centre  significantly  tax  design  revenues  proportion  gst  states  taxes

History of this topic

Mind economy's interest before Revenue's: Sanjay Malhotra to tax officials
2 weeks, 5 days ago

Mind economy's interest before Revenue's: Sanjay Malhotra to tax officials

Live Mint  

New Delhi: Cautioning tax officials to not kill the goose that lays the golden egg in the process of tax collection, revenue secretary Sanjay Malhotra told a gathering of officials that they need to be careful not to hurt the economy’s interests in the hunt for revenue. “This is a very positive development for the industry—it signals the government's intention …

GST mop-up fourth highest ever but red flags in laggard states
3 weeks, 1 day ago

GST mop-up fourth highest ever but red flags in laggard states

Hindustan Times  

The Goods and Services Tax revenue in November grossed over ₹1.82 lakh crore, the fourth highest monthly collection ever that also crossed the ₹1.80 lakh crore mark for the fifth time in 88 months since July 2017, despite major states such as Andhra Pradesh, Rajasthan and Chhattisgarh showing a dip in growth. The goods and services tax revenue in November …

GST Revenue Trends: A Rollercoaster Ride of Ups and Downs
1 month, 2 weeks ago

GST Revenue Trends: A Rollercoaster Ride of Ups and Downs

The Hindu  

GST revenue trends have been volatile this year, with growth in gross and net receipts exceeding that of the previous year's highest points, but falling short of the previous year's overall growth. While the year started with a strong surge in April, subsequent months have shown a decline in growth. The latest GST receipts indicate a positive trend, but it …

GST collections hit a 40-month low in September 2024
2 months, 3 weeks ago

GST collections hit a 40-month low in September 2024

The Hindu  

Growth in India’s Gross Goods and Services Tax collections slumped to a 40-month low of 6.5% in September, with revenues at ₹1,73,240 crore, about 1% lower than the tally in August. Gross domestic revenues were up 5.9% in September, with the uptick moderating 4.5% higher after adjusting for refunds, provisional numbers from the Central Board of Indirect Taxes and Customs …

GST receipts’ growth rebounds to 10.3%; July kitty third-highest ever
4 months, 3 weeks ago

GST receipts’ growth rebounds to 10.3%; July kitty third-highest ever

The Hindu  

India’s Gross Goods and Services Tax collections hit their third-highest monthly level in July to cross ₹1.82 lakh crore, with revenue growth recovering to 10.3% from a three-year low of 7.6% in June. Gross revenue from domestic transactions grew 8.9% in July, easing from 9.4% recorded in June, but growth in taxes collected on imports bounced 14.2% from just 2.4% …

Punjab sees 15% jump in tax revenue despite sluggish GST
5 months ago

Punjab sees 15% jump in tax revenue despite sluggish GST

Hindustan Times  

Chandigarh : The Punjab government registered an increase of 15% year-on-year in its tax revenue in the first quarter of the financial year 2024-25. The Punjab government registered an increase of 15% year-on-year in its tax revenue in the first quarter of the financial year 2024-25 The impressive increase came on the back of improved state excise, sales tax and …

Lessons from India’s midnight tryst with fiscal destiny
5 months ago

Lessons from India’s midnight tryst with fiscal destiny

New Indian Express  

At this point, Chidambaram passed a handwritten note to me and other finance ministry secretaries. This involved setting up the required technology systems, building a GST model that is revenue-neutral to the states, and achieving a grand bargain between states and the Centre to integrate divergent tax systems. It was known that the technology systems were not yet fully ready, …

GST dilemma: The burden of related party transactions
6 months ago

GST dilemma: The burden of related party transactions

New Indian Express  

Introduction: The Goods and Services Tax marks a pivotal transformation in the landscape of taxation, fundamentally altering the way taxes are assessed and collected. Delving into its intricacies, particularly concerning Related Party Transactions, holds paramount importance for businesses endeavouring to navigate the realms of regulatory compliance and financial prudence effectively. GST implementation & Objectives: Introduced in India in July 2017, …

GST collection rises 10% to ₹1.73 lakh crore in May
6 months, 3 weeks ago

GST collection rises 10% to ₹1.73 lakh crore in May

The Hindu  

The country's gross GST collections rose to ₹1.73 lakh crore in May, growing 10% year on year driven by increased revenues from domestic transactions, the finance ministry said on Saturday. After accounting for refunds, the net GST revenue for May 2024 stood at ₹1.44 lakh crore, reflecting a growth of 6.9% compared to the same period last year. The gross …

10 years of Modi government: Tax reforms, challenges
7 months, 1 week ago

10 years of Modi government: Tax reforms, challenges

New Indian Express  

NEW DELHI: In the last 10 years of Modi government rule, India has undergone marked tax reforms focused on streamlining the tax framework, enhancing compliance, and fostering transparency. Key reforms common to Customs, GST, income tax, and corporate tax include digitisation for e-filing and digital payments, real-time data sharing to detect tax frauds, faceless assessment and appeals, dispute resolution schemes …

GST has helped people with a pro-poor approach, says Nirmala Sitharaman
7 months, 2 weeks ago

GST has helped people with a pro-poor approach, says Nirmala Sitharaman

The Hindu  

The Goods and Services Tax regime has benefitted people through a pro-poor approach, Union Finance Minister Nirmala Sitharaman asserted on May 6, while underlining that the recent landmark of GST collections crossing ₹2 lakh crore was driven by heightened economic activity. Noting that the idea of GST was first mooted under the Atal Behari Vajpayee-led NDA government, Ms. Sitharaman said …

Broaden GST net, cut cesses to reduce tax burden
7 months, 3 weeks ago

Broaden GST net, cut cesses to reduce tax burden

New Indian Express  

Goods and services tax collection crossed the landmark of Rs 2.1 lakh crore for the first time in April. Truth be told, April has always seen higher collections, thanks in part to year-end adjustments in tax assessments. But what sets apart the latest haul is that a part of the 12.4 percent increase over last year was led by a …

Next government must urgently fix ‘unnecessarily complex’, counter-productive GST: 13th Finance Commission chair
8 months, 2 weeks ago

Next government must urgently fix ‘unnecessarily complex’, counter-productive GST: 13th Finance Commission chair

The Hindu  

A key architect of India’s tax reforms and the chairman of the Thirteenth Finance Commission Vijay Kelkar has called upon the country’s next government to undertake urgent reforms in the “unnecessarily complex” Goods and Services Tax regime, such as switching to a single tax rate of 12% and sharing revenues with local governments and municipal corporations. Stating that a single …

A reform window: On the GST trajectory
8 months, 3 weeks ago

A reform window: On the GST trajectory

The Hindu  

The financial year 2023-24 appears to have ended on a high on the revenue front. Net direct tax collections rose 19.9% by mid-March to hit 97% of revised Budget targets, while the Goods and Services Tax has yielded a robust ₹20.18 lakh crore. Gross GST revenues in March, for transactions undertaken in February, crossed ₹1.78 lakh crore, the second highest …

GST Needs A Robust Dispute-Resolution Mechanism - News18
10 months ago

GST Needs A Robust Dispute-Resolution Mechanism - News18

News 18  

The Goods and Services Tax was introduced to rationalise the indirect tax system in India, thereby creating a common national market for goods and services. Disputes on an interpretation of the law, unsatisfactory advance ruling mechanism, and revenue-centric approach by tax authorities have led to an increase in litigation. For example, the ‘Sabka Vishwas Scheme 2019’ resolved around 49,534 pre-GST …

BJP Government Did Not Rectify Injustice Meted out To Karnataka Alleges CM In His Budget
10 months, 1 week ago

BJP Government Did Not Rectify Injustice Meted out To Karnataka Alleges CM In His Budget

Deccan Chronicle  

Bengaluru: Chief Minister Siddaramaiah pointed out that Central Government led by Bharatiya Janata Party had meted out three injustices to States including Karnataka such as “unscientific” implementation of Goods and Services Tax, increase in Cesses and Surcharges and change in allocation of formula in tax devolution and grants-in-aid, adversely affected the financial strength of the State. Siddaramaiah accused the previous …

GST revenues reveal a dissonance in consumption growth across States
11 months, 2 weeks ago

GST revenues reveal a dissonance in consumption growth across States

The Hindu  

Amid worries about weak consumer spending trends, Goods and Services Tax revenues for the first nine months of 2023-24 reveal a dissonance in consumption growth across States, with Gujarat, West Bengal and Andhra Pradesh among a dozen-odd States that are seeing weaker growth. Among the 20 largest States that account for nearly 97% of State GST collections, two large States, …

Growth signals: On GST revenues
11 months, 3 weeks ago

Growth signals: On GST revenues

The Hindu  

The Goods and Services Tax has yielded close to ₹1.65 lakh crore in gross revenues in the last month of 2023. The first nine months of 2023-24 have clocked a 12% rise in GST collections, with the monthly intake averaging ₹1.66 lakh crore, from ₹1.49 lakh crore in 2022-23. The Budget had factored in monthly GST revenues of around ₹1.59 …

GST revenue growth dips to a 3-month low in December
11 months, 3 weeks ago

GST revenue growth dips to a 3-month low in December

The Hindu  

India’s Goods and Services Tax revenues crossed ₹1,64,800 crore in December 2023, with year-on-year growth slowing to a three-month low of 10.3% from a 15.1% rise in the previous month. December’s GST kitty, for transactions undertaken in November 2023, is about 1.8% lower than the nearly ₹1.68 lakh crore collected a month earlier, which marked the third highest monthly receipts …

GST collections hit ₹1.68 trillion in November
1 year ago

GST collections hit ₹1.68 trillion in November

Live Mint  

Goods and Services Tax collections touched ₹1.68 trillion in November as festive demand lifted sales, but the figure was lower than October’s receipts of ₹1.72 trillion. A finance ministry statement said that November GST revenue receipts showed a 15% improvement from the year-ago period, the fastest pace of growth the indirect tax has registered since its inception in 2017. The …

GST regime has ‘very efficiently’ brought tax rates down: FM
1 year, 1 month ago

GST regime has ‘very efficiently’ brought tax rates down: FM

The Hindu  

Finance Minister Nirmala Sitharaman said on Tuesday that the Goods and Services Tax regime has “very efficiently” brought tax rates down and consumers now pay lower levies than they did in the earlier indirect tax regime. Ms. Sitharaman also urged businesses staying out of the GST system to come within its fold or risk losing prospective customers, adding that such …

GST revenue growth slowed to 10.2% in September
1 year, 2 months ago

GST revenue growth slowed to 10.2% in September

The Hindu  

Growth in India’s gross Goods and Services Tax revenues slowed to a 27-month low of 10.2% in September, from around 10.8% in the previous two months. While the Finance Ministry did not specify the extent of decline in its statement, back-of-the-envelope calculations show that GST revenues from goods imports dropped 0.11% from last September. Slowest growth in 27 months The …

At ₹1,713 cr, Punjab’s GST collection sees a spike of 31%
1 year, 3 months ago

At ₹1,713 cr, Punjab’s GST collection sees a spike of 31%

Hindustan Times  

The goods and services tax collection in Punjab reported a 31% year-on-year jump in August 2023 due to robust growth in business activities and increased monitoring to plug revenue leakages. In the first five-month period, the GST revenues are 28.20% higher this year than the collection during the same period last year, rising to ₹ 8,524.17 crore from ₹ 6,648.49 …

GST revenues register three-month high in July
1 year, 4 months ago

GST revenues register three-month high in July

The Hindu  

India’s gross revenues from the Goods and Services Tax hit a three-month high to cross ₹1.65 lakh crore in July. Revenues from domestic transactions and services imports grew 15% in July, which marked the fifth occasion that GST revenues have crossed the ₹1.6-lakh-crore mark during a month. Overall GST Compensation Cess levies, which will continue till at least March 2026 …

More GST related data may be made public: GSTN
1 year, 5 months ago

More GST related data may be made public: GSTN

Live Mint  

New Delhi: Goods and Services Tax Network, the company that processes GST returns may put more tax data related to geography and industry in the public domain, industry body Assocham said in a statement quoting chief executive of GSTN Manish Kumar Sinha. A committee is deliberating on placing more data in the public domain which will provide more insights on …

An incomplete reform: on six years of the Goods and Services Tax
1 year, 5 months ago

An incomplete reform: on six years of the Goods and Services Tax

The Hindu  

India’s tryst with the Goods and Services Tax, launched at a special midnight Parliament session with unusual fanfare, completed six years this month. Marking the occasion, Finance Minister Nirmala Sitharaman emphasised that the GST has moved the country towards a unified market from a situation where each State mandated different indirect tax structures and procedures, while inter-State borders were marked …

India's Gross GST Revenue Collection Up 12% in June
1 year, 5 months ago

India's Gross GST Revenue Collection Up 12% in June

Deccan Chronicle  

NEW DELHI: With India’s goods and services tax or GST having completed six years on Saturday, the ministry of finance said that India's gross GST revenue collection in June stood at over Rs 1.61 lakh crore, registering a 12 per cent growth year-on-year basis. However, the gross GST collection crossed Rs 1.6 lakh crore mark for fourth time since inception …

GST helped increase revenue buoyancy of states as all-round benefit stands out 'exemplary': FM
1 year, 5 months ago

GST helped increase revenue buoyancy of states as all-round benefit stands out 'exemplary': FM

India TV News  

Goods and Services Tax: Union Finance Minister Nirmala Sitharaman on Saturday said Goods and Services Tax has strengthened the revenue buoyancy of states, and the all-around benefit stands out as "exemplary". Giving a comparison of the tax rates pre and post-GST, Sitharaman said, "GST has done justice to the consumers by bringing the rates down compared to the previous regime". …

GST has been a gamechanger for India’s economy
1 year, 5 months ago

GST has been a gamechanger for India’s economy

Live Mint  

Ahead of the launch of the goods and services tax on 1 July 2017, this newspaper on 6 June 2017 had published my piece titled ‘Indian GST: Unparalleled Tax Reform’ in which I had highlighted the unique features of India's GST regime such as the Dual GST structure; Integrated GST mechanism; invoice matching; single digital interface and the establishment of …

Year-end compliances lift GST revenues to record ₹1.87 lakh crore in April
1 year, 7 months ago

Year-end compliances lift GST revenues to record ₹1.87 lakh crore in April

The Hindu  

India’s gross GST revenues hit a record high in April at ₹1,87,035 crore, 12% higher than the same month last year which had clocked the previous highest tax tally of ₹1.67 lakh crore. GST Compensation Cess collections also hit a fresh record of ₹12,025 crore in April, which included about ₹900 crore collected from imports of goods. Central GST collections …

Tax transitions: The Hindu Editorial on GST revenue trends
1 year, 9 months ago

Tax transitions: The Hindu Editorial on GST revenue trends

The Hindu  

The nearly ₹1.5 lakh crore of gross Goods and Services Tax collections in February are notable from several aspects. First, they mark the 12th successive month that GST revenues have stayed over ₹1.4 lakh crore, and the fourth highest single month kitty since the launch of the GST regime. The average monthly GST collections in the first 11 months of …

Steady GST hum
1 year, 9 months ago

Steady GST hum

Live Mint  

Goods and services tax revenue figures for February released by the government on Wednesday show that collections climbed 12% from a year earlier to almost ₹1.5 trillion. February’s collections mark 12 months in a row of GST revenue exceeding ₹1.4 trillion. As the economy’s formalization rises and government efforts to draw small businesses into the tax net bear fruit, GST …

AP surpasses national average in GST collections, says CM
1 year, 10 months ago

AP surpasses national average in GST collections, says CM

Deccan Chronicle  

Vijayawada: Andhra Pradesh had done better than the national average in GST collections. At a review meeting he held with top officials of the revenue-earning departments at the CM Camp Office in Tadepalli, Jagan Mohan Reddy said AP’s GST collections for the last fiscal totalled Rs 26,360.28 crore by January 2022. Jagan Mohan Reddy explained that the gross GST collections …

Union Budget 2023-24: Why setting store by GST, fuel tax regressive
1 year, 11 months ago

Union Budget 2023-24: Why setting store by GST, fuel tax regressive

Firstpost  

The Goods and Services Tax collections have been surging recording Rs 1.50 lakh crore or so in December 2022. Fuel tax collections for the Centre too have been impressive at around Rs 8 lakh crore in each of the three financial years ending 2021. Add to this the Value-Added Tax imposed by state governments on fuel at the ballpark figure …

Why is GST revenue running ahead of overall economy?
2 years, 1 month ago

Why is GST revenue running ahead of overall economy?

Live Mint  

Revenues from the goods and services tax —the countrywide indirect tax since June 2017—have been on a tear. According to the GST Council, which sets GST rates, and comprises Central and state governments: “Better reporting coupled with economic recovery has been having positive impact on GST revenues on a consistent basis." Excluding GST revenues from imports from total GST revenues, …

GST revenue likely at Rs 1.45 lakh crore in September
2 years, 2 months ago

GST revenue likely at Rs 1.45 lakh crore in September

India TV News  

Highlights Goods and Services Tax revenue mop-up in September is expected to be around Rs 1.45 lakh crore The collection has been over Rs 1.4 lakh crore since March & in August it was Rs 1.43 lakh crore The mop-up in September last year was Rs 1.17 lakh crore Goods and Services Tax revenue mop-up in September is expected to …

For sixth month in a row, GST revenues cross ₹1.4 lakh crore mark
2 years, 3 months ago

For sixth month in a row, GST revenues cross ₹1.4 lakh crore mark

The Hindu  

India’s gross revenues from the Goods and Services Tax were ₹1,43,612 crore in August, 28% higher than a year ago. This is the sixth successive month when GST revenues have been over the ₹1.4 lakh crore mark, the Finance Ministry said, stressing that GST collections have risen 33% till August this year, compared to the same period of 2021-22, and …

In charts, the GST’s five-year report card
2 years, 5 months ago

In charts, the GST’s five-year report card

Live Mint  

Five years ago, the goods and services tax was launched as one of India’s biggest reforms in recent years, with the purpose of making indirect taxes “good and simple". View Full Image Chart-1 The GST regime has completed five years and the guaranteed compensation for loss in revenue to states ceases to exist. View Full Image Chart-2A View Full Image …

Strengthening the GST regime
2 years, 5 months ago

Strengthening the GST regime

Hindustan Times  

The two-day meeting of the Goods and Services Tax Council that starts on Tuesday is the 47th of the body – but it is likely the most important to date. When the GST law was passed in 2017, states were assured they would be compensated for the potential loss of revenue on account of moving to the GST regime. The …

GST collection touches all-time high amid inflation, global volatility | Here's how
2 years, 7 months ago

GST collection touches all-time high amid inflation, global volatility | Here's how

India Today  

The Goods and Services Tax revenue collection in India has touched an all-time high of Rs 1.68 lakh crore in April. The gross GST collection in April 2022 is an all-time high and Rs 25,000 crore more than the previous highest collection of Rs 1.42 lakh crore recorded in March this year. Deloitte India Partner MS Mani said while the …

GST revenues at all-time high of Rs 1.68 lakh cr in April
2 years, 7 months ago

GST revenues at all-time high of Rs 1.68 lakh cr in April

India TV News  

Highlights The increase is mainly because of improved compliance and recovery in business activity During the month, 1.06 crore GST returns from GSTR-3B were filed Revenues from import of goods were 30 per cent higher The GST collection in April touched the highest ever level of about Rs 1.68 lakh crore, up 20 per cent from the year-ago period, on …

GST: Govt Plans To Reduce Slabs; Tax To Increase On Goods And Services?
2 years, 8 months ago

GST: Govt Plans To Reduce Slabs; Tax To Increase On Goods And Services?

News 18  

The government is planning to raise the goods and services tax over the next two years and reduce the number of slabs, according to an FE report quoting sources. This may help the government raise tax collections and reduce inflation which is already at a 17-month high of 6.95 per cent. Currently, the GST system has four slabs — 5 …

Record Exports, GST Collections: Signs of Indian Economic Recovery But Challenges Remain
2 years, 8 months ago

Record Exports, GST Collections: Signs of Indian Economic Recovery But Challenges Remain

News 18  

Despite global uncertainties due to the Russia-Ukraine war looming large and effects of supply chain disruptions continue globally, key domestic economic indicators have started showing signs of a recovery in the Indian economy. GST collections and exports are touching record high numbers, while housing sales as well as new project launches are also gaining good momentum. “The gross GST collection …

Goods and Services Tax as an unfinished agenda
3 years ago

Goods and Services Tax as an unfinished agenda

The Hindu  

GST, or Goods and Services Tax, an institutional tax innovation intensively marketed in many countries by the International Monetary Fund and the World Bank, was wrapped in a “one nation one tax” package, and was accepted by India on the midnight of July 1, 2017. While the States have forgone a substantial part of their own tax revenue, they were …

Four Years On, India's GST Has Not Met Its Fundamental Purpose
3 years, 5 months ago

Four Years On, India's GST Has Not Met Its Fundamental Purpose

The Quint  

One reason for this lies in the overall complicatedness of the system. But that’s not the point, given that one of the aims of any new tax should be to expand the tax base and for that to happen, the tax system needs to be simple, which GST is not. It can take the GST that has been paid on …

Economy in better shape this year as compared to 2020, says Revenue Secretary
3 years, 6 months ago

Economy in better shape this year as compared to 2020, says Revenue Secretary

India TV News  

Revenue Secretary Tarun Bajaj on Friday said the economy has not suffered as much this year amid the second wave of COVID-19 as compared to last year when there was complete lockdown. He further said if Rs 1.10 lakh crore gets collected every month on average through the Goods and Services Tax, then the states' GST revenue deficit would be …

GST regime is in crisis
3 years, 6 months ago

GST regime is in crisis

Hindustan Times  

The Goods and Services Tax Council will meet on May 28 after a gap of seven months. Many state governments, which are ruled by parties opposed to the Bharatiya Janata Party, have demanded a GST waiver on various kinds of medicinal supplies being used for treating Covid-19. Using GST Council meetings to tweak GST rates on various commodities – Gujarati …

GST is not a tax system, it is an attack on India’s poor, says Rahul Gandhi
4 years, 3 months ago

GST is not a tax system, it is an attack on India’s poor, says Rahul Gandhi

The Hindu  

Continuing his attack on the Narendra Modi government’s economic policies, former Congress president Rahul Gandhi said that the “ GST is not a tax system, it is an attack on India’s poor”. Speaking on the GST in the third edition of the video series on economy, Mr. Gandhi said that GST was the second major attack on the unorganised economy. …

The GST pact must hold for this tax reform to work out
4 years, 3 months ago

The GST pact must hold for this tax reform to work out

Live Mint  

As India’s government reneges on compensating the states for GST shortfalls, there are murmurs of a sovereign default, constitutional crisis and breakdown of federalism. The constitutional trade-off with GST was that states would lose some more of their fiscal/federal autonomy in an already centripetal fiscal structure. The Modi government could now face a full-blown constitutional and federal crisis, with states …

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