Thursday, September 28, 2023

GST Collection: GST filled the coffers of the government, progress became faster… with one arrow…

Goods and Services Tax i.e. GST is not a very old system for India. After a month, six years of implementation of GST will be completed. In these six years, the system of GST has started becoming strong and mature. This has not only increased the government’s income from taxes, but it has also helped the government to achieve many goals simultaneously. Let us try to explain it with the help of figures…

GST collection increased so much in May

First of all, the latest figures. A day earlier i.e. on June 1, 2023, the Finance Ministry has informed about the latest figures of GST collection. The Finance Ministry has told that in the month of May 2023, the government received a revenue of Rs 1.57 lakh crore from GST. This earning to the exchequer during May 2023 is 12 percent more than a year ago i.e. May 2022. This shows that year after year the government exchequer is getting more money from GST than before.

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GST made a record in April

Just before May i.e. During the month GST made its best ever record. During the month of April, the government had earned Rs 1.87 lakh crore from GST. This is the highest earning for the government from indirect taxes during any one month. The thing becomes more clear by looking at more figures of GST collection. Since its implementation, there have been five occasions when the revenue from GST has been more than Rs 1.5 lakh crore. Not only this, May was the 14th consecutive month when the government managed to collect more than Rs 1.4 lakh crore revenue from GST. The government has received more than Rs 1.40 lakh crore from GST every month during the financial year. For the current financial year i.e. 2023-24, the figures of two months April and May 2023 have come out. The GST collection during both the months has been higher as compared to the same month a year ago. Earlier, in the month of March 2023, the GST collection had increased by 13 percent to Rs 1.60 lakh crore as compared to a year ago. This shows that the collection from GST is continuously improving. This can be better understood from this graphic of the Ministry of Finance…

Only one GST in place of these taxes

Before the implementation of GST, there were many types of taxes in the name of indirect tax system in India, the most prominent of which was VAT means Value Added Tax. Apart from this, central taxes like Central Excise Duty, Service Tax, Additional Custom Duty, Central Surcharges and Cess and State taxes like Value Added Tax, Central Sales Tax, Octroi and Entry Tax, Purchase Tax, Luxury Tax, Entertainment Tax were also subsumed in GST. Has been given. This is the biggest change that has happened since the introduction of GST. A single tax system instead of around 30 taxes, which means less headache for taxpayers.

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Simplification increases compliance

When GST is implemented in India At that time many questions were being raised on this. However, now the figures given by GST for the last year-one-and-a-half years, they themselves answer all the questions. The easiest thing that GST has simplified is compliance. It is an established fact not only for the economy but for any system that if the rules and regulations are simple, people will follow them better. GST has also proved this point. Due to the simplification of the system, the net means of tax has increased, due to which ultimately the government’s earnings have increased. As the GST performance on the revenue front becomes more balanced and stable, it opens itself up to make it simpler than ever before.

Helps the government reduce the deficit

Now let’s see some figures for how GST is helping the government. Many important economic figures were released on Wednesday 31 May. On that day the CGA informed about the fiscal deficit position of the government. According to CGA data, India’s fiscal deficit in the financial year 2022-23 stood at 6.4 per cent of GDP. Even in the revised estimates of the Finance Ministry, the fiscal deficit was targeted to remain the same. This clearly shows that the government’s earnings have increased rapidly and indirect taxes i.e. GST contribute more than 50 percent of the total revenue received by the government. In 2022-23, the contribution of indirect taxes to the total revenue of the government was about 55 percent.

Freedom to spend freely

This figure of contribution of GST to the total revenue is The reason becomes important because the current government has laid a lot of emphasis on infrastructure to accelerate the country’s economic growth. Presenting the budget in February, Finance Minister Nirmala Sitharaman had proposed Rs 10 lakh crore for infrastructure, which is equal to 3.3 per cent of GDP. This is a whopping 3 times increase in the budget for the infrastructure sector as compared to 2019. The government believes that spending on infrastructure has a multiplier effect on the economy, that is, it propels many other sectors as well. GDP figures confirm this.

These figures of GDP are also witnesses

On Wednesday, 31 May itself, the government released the growth figures of the Indian economy. The Indian economy outperformed all expectations and grew at 6.1 per cent during the March quarter. At the same time, during the entire financial year 2022-23, India’s economic growth rate crossed 7 percent and stood at 7.2 percent. This is the most spectacular economic growth rate compared to any major global economy. These spectacular figures have come at a time when the whole world is grappling with challenges. Germany is in recession. The economy is slowing down in America and factory activities in China are declining. Indeed, GST has helped the government achieve multiple objectives in these six years of its existence and is going to play a major role in making India a $5 trillion economy in the years to come.

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