Page 39 - NIS English 01-15 July 2022

5 Years of GST Reform
ONE NATION

ONE TAX

In the midst of global turmoil and
polarisation, India today is playing the
pivotal role on the global stage thanks
to reforms that began after 2014. All
shackles were broken by removing
the web of laws and compliance.
The GST (Goods and Services Tax)
is one such reform, which was first
envisioned by Atal Bihari Vajpayee
but only became a reality 17 years
later, on July 1, 2017. GST not only
eliminated hundreds of different
tax traps, but it also introduced new
services into the lives of ordinary
people and businesses.

here are times when we attempt to reach a new imposed taxes ranging from 35% to 110%. It was
level or point in a nation's development. On the drastically reduced. Previously, the tax on 235 items
Tnight between June 30 and July 1, the country was either 31 percent or higher. The tax on all but
demonstrated outstanding federalism by turning into 10 of them was immediately reduced to 28%. The
reality 17-year journey. GST became an economic tax on those 10 items was reduced even further to
revolution, providing direction to the entire country 18%. Several slabs have been created for a limited
and adding a new dimension to the economy. Team time to ensure that the price of any item did not rise.
India took a significant step toward realising the This slowed the rise in prices. Items of common use
dream of 'One Nation-One Tax' by eliminating 500 were brought into the nil or 5% tax bracket. Returns
different types of taxes in the country, from Kashmir and assessments went online, and the army of
to Port Blair, Gujarat to Arunachal Pradesh. inspectors vanished. The Input Tax Credit System
Indeed, due to price differences, different states allowed traders to adjust the tax paid on the same
used to have different tax rates on the same goods. item in the credit form at the time of filing the return.
As a result, residents of the state's border regions The GST was a step toward uniting India in the
frequently made large purchases from neighbouring thread of a uniform tax system, which resulted in
states with lower tax rates. Furthermore, traders increased business activity and a new look for the
used to become entangled in a web of various types country's GDP. As a result, businessmen, big and
of taxes and forms. The GST was implemented small, have been doing business with ease, and the
to free people from these shackles. This ground- system of filing returns has become simple and easy
breaking initiative has completed five years. Since thanks to a single tax system. With the introduction of
the implementation of GST, the situation has the GST system, the tax system in India has become
changed dramatically. All 17 taxes were combined. simpler, giving businessmen renewed confidence.
India has merged into a single market. Interstate GST will be a watershed moment in India's history
highway blocks were removed. The elimination of this year, as we celebrate 75 years of independence
the entry tax made it easier to enter cities. and work toward our goal of becoming a $5 trillion
In the name of "entertainment," various states economy by 2025.
New India Samachar July 1-15, 2022 37