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  • Budget Speech14

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    sai
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    The document summarizes key reforms and benefits of India's Goods and Services Tax (GST). It notes that GST consolidated numerous central and state taxes into a single tax, reducing the tax burden on consumers and businesses. Under GST, tax rates were lowered, especially on everyday items and services used by the poor and middle class. Exemptions for small businesses were doubled and a composition scheme was introduced to reduce compliance burdens. Despite tax reductions and relaxations, revenue trends remain encouraging with average monthly tax collections increasing since the first year of GST implementation.

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    Budget Speech

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    The document summarizes key reforms and benefits of India's Goods and Services Tax (GST). It notes that GST consolidated numerous central and state taxes into a single tax, reducing the tax burden on consumers and businesses. Under GST, tax rates were lowered, especially on everyday items and services used by the poor and middle class. Exemptions for small businesses were doubled and a composition scheme was introduced to reduce compliance burdens. Despite tax reductions and relaxations, revenue trends remain encouraging with average monthly tax collections increasing since the first year of GST implementation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    2 views3 pages

    Budget Speech14

    Uploaded by

    sai
    The document summarizes key reforms and benefits of India's Goods and Services Tax (GST). It notes that GST consolidated numerous central and state taxes into a single tax, reducing the tax burden on consumers and businesses. Under GST, tax rates were lowered, especially on everyday items and services used by the poor and middle class. Exemptions for small businesses were doubled and a composition scheme was introduced to reduce compliance burdens. Despite tax reductions and relaxations, revenue trends remain encouraging with average monthly tax collections increasing since the first year of GST implementation.

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    © All Rights Reserved
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    of 3

    GSTReformforbenefittoconsumersandbusinesses

    2. TheGoodsandServicesTax(GST)
    reformslingeredonduringthepreviousGovernmentforalm
    ostadecade.OurGovernmentimplemented 
    theGST,whichisundoubtedlythebiggesttaxationreformun
    dertakensinceIndependence.Seventeendifferenttaxeslev
    iedbytheCentralandState/UTGovernmentswithcascading
    effectoftaxontax,wereconsolidatedintooneGST.Indiabec
    ameacommonmarket.GSThasresultedinincreasedtaxbas
    e,highercollectionsandeaseoftrade.This 
    willreducetheinterfacebetweenthetaxpayerandtheGove
    rnmentforday‐to‐
    dayoperationsandassessments.Nowreturnsarefullyonlin
    eande‐waybillsystemisinplace.Inter‐statemovements 
    havebecomefaster, 
    moreefficient,andhasslefreewithnoEntryTax,checkposts,
    andtruckqueues.
    3.
    Thehightaxationleviedonmultiplecommoditiesinthe
    pre‐
    GSTregimehasbeenrationalisedandtheburdenonthecons
    umer,especiallythepoorandthemiddleclass,hasbeensigni
    ficantlyreduced.TheGSTCouncil,comprisingtheCentreand
    States/UTs,finalisedtheGSTratescollectively 
    mostlylowerthanpre‐GSTrates.Sincethen,GST  has 
    beencontinuouslyreducedprovidingreliefofabout`
    80,000croreannuallytoconsumers.Mostitemsofdailyuseo
    f  thepoorandmiddleclassarenowinthe0%or5%
    taxslab.Cinemagoerswhoweresubjectedtomultipletaxes

    1
    upto50%aremostlypayingmuchlowertax  at12%
    now.OurGovernmentwants 
    theGSTburdenonhomebuyers  to  be 
    reducedandaccordingly  we 
    havemovedtheGSTCounciltoappointaGroupofMinisterst
    oexamineandmakerecommendationsinthisregardatthee
    arliest.

    4.
    GSTaimstobenefitsmalltraders,manufacturersandse
    rviceproviders.ExemptionsfromGSTforsmallbusinessesha
    sbeendoubledfrom`20lakhto`
    40lakh.Further,smallbusinesseshavingturnoverupto`
    1.5crorehavebeengivenanattractivecompositionscheme
    whereintheypayonly1%flatrate  and  have  to 
    fileoneannualreturn  only.Similarly,smallserviceproviders 
    with  turnover  upto`50 
    lakhscannowoptforcompositionschemeandpayGSTat6%
    insteadof18%.Morethan35lakhsmalltraders,manufactur
    ersandserviceproviderswillbenefitfromthesetraderfriend
    lymeasures.Soon,businessescomprisingover90%
    ofGSTpayerswill be allowed to filequarterlyreturn.

    5.
    Inspiteofsuchmajorratereductionsandrelaxations,re
    venuetrendsareencouraging.Theaveragemonthlytaxcolle
    ctioninthecurrentyearis`
    97,100crorepermonthascomparedto`
    89,700crorepermonthinthefirstyear.TheStaterevenuesar
    eimprovingwithguaranteed14%

    2
    annualrevenueincreaseforthefirstfiveyears.

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