On the first death anniversary of senior BJP leader Sh. Arun Jaitley, FM Nirmala Sitharaman remembering and lists GST achievements in the past 3 years.
FM spoke about the Goods and Service Tax (GST) system in India, which was introduced by Sh. Arun Jaitley in July 2017, when he was the Union Finance Minister.
GST Achievements by Finance Ministry
The Finance Ministry tweeted that GST has reduced the rate at which people have to pay tax and helped increase compliance and double taxpayer base to 1.24 Crore. She added that there is a total of 480 items in the NIL and 5% tax rate category, 221 are at 12%, and 607 items in the 18% rate. Only 29 items are in the 28% tax rate category.
FM Further said that ” Due to reduction in rates, the loss of revenue has been more than Rs. 1 Lakh Crore annually.
Business with an annual turnover of up to Rs. 40 Lakh are GST exempt initially, this limit was Rs. 20 Lakh. Additionally those with a turnover up to Rs. 1.5 crore can opt for the Composition Scheme and pay only tax @ 1%.
An analysis by the reserve bank of India observed that since the rollout of GST, the rate changes have brought down the GST Incidence from 14 percent to 11.6 percent,” FM said.
Finance Minister Smt. Nirmala Sitharaman also said the tax net had widened, stating that there are currently 1.2 crore GST assessees, as against 65 lakh when the system was introduced.
Also, the housing sector has been placed in the 5 percent slab, while GST on affordable housing has been reduced to 1 percent.
The GST Council will next meet on August 27, Thursday.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)