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GST Revenues Cross ₹1.4 Lakh Cr. Mark Again

Context:

India’s gross revenues from the Goods and Services Tax (GST) were ₹1,43,612 crore in August, 28% higher than a year ago.

Relevance:

GS II- Indian Economy

Dimensions of the Article:

  1. Details
  2. What is GST?
  3. GST Act
  4. What are GST Slabs?

Details:

  • India’s Gross revenues from the Goods & Services Tax has witnessed a significant rise compared to previous year.
  • Revenues from import of goods soared 57% during the month while domestic transactions and import of services yielded 19% higher taxes than in August 2021.
  • This is the sixth successive month when GST revenues have been over the ₹1.4 lakh crore mark,
  • Manufacturing Sector: Indian manufacturers reported the fastest increase in production and new orders.
  • This is mainly due to strengthening demand conditions and a spike in export order.
  • Performance of States:
    • August GST revenues grew 19% in Tamil Nadu, 21% in Haryana and Delhi, 22% in Andhra Pradesh, 24% in Maharashtra, 25% in West Bengal, 26% in Kerala, and 29% in Karnataka. Mizoram and Goa reported the highest growth in revenues at 78% and 32%, respectively.

What is GST?

  • GST is a destination-based indirect tax and is levied at the final consumption point.
  • Under it, the final consumer of the goods and services bear the tax charged in the supply chain.
  • GST is a transparent and fair system that prevents black money and corruption and promotes new governance culture.

GST Act:

  • Goods and Services Tax (GST) Act came into effect in 2017.
  • Goods and Services Tax (GST) was introduced by the Government of India to boost the economic growth of India. GST is considered to be the biggest taxation reform in the history of the Indian economy.
  • The power to make any changes in the GST law is in the hands of the GST Council. GST Council is headed by the Finance Minister. One hundred and first amendment act, 2016 introduced the GST in India in July 2017.

What are GST Slabs?

  • Over 1300 items and over 500 services are included in India’s 4 main GST slabs.
  • There are five general tax rates: 0%, 5%, 12%, 18%, and 28 %; in addition, a cess is imposed on select “sin” commodities in addition to the 28 % tax.
  • The GST Council reviews the products included in each slab rate on a regular basis to make adjustments for changes in market conditions and business needs.
  • The revised structure makes sure that necessities are subject to lower tax categories and that luxury goods and services are subject to higher GST rates.
  • Demerit goods, including alcoholic beverages, cars, and tobacco products, are taxed at a rate of 28 percent plus an additional GST compensation

-Source: The Hindu


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