Page 16 - NIS English 01-15 July,2023

Cover Story 6 Years of GST

did GST relieve businessmen and entrepreneurs of
the burdens of all indirect taxes such as sales tax,
service tax, excise, entry tax, octroi, purchase tax,
and entertainment tax, but it also increased state
and federal revenue. As an economic revolution,
GST has taken a quantum leap. Gross GST
collection in April 2023 is the highest ever at Rs
1,87,035 crore, surpassing the previous high of Rs
1,67,540 crore in April 2022. The GST revenue for
April 2023 is 12% higher than the GST revenue for One GST many benefits
the same month last year.
According to estimates, the GST has directly 1. Tax on consumption instead of production
or indirectly benefited 8 crore of the country's
business class. The GST has decreased consumer In GST, tax is collected when a good or service is sold.
spending while increasing savings. The tax burden The final price of a good or service includes the GST ap-
on consumer goods has decreased. The tax on plicable to it. The supplier of goods or services (trader)
everyday items has been reduced. According to a charges the same from the receiver of the supply (cus-
Ministry of Finance study, there is a 4% savings tomer). Later it is deposited in the account of the gov-
on monthly household expenditure. GST has now ernment. This means that the responsibility for recovery
evolved into such a reform that it has aided in the of GST lies on the supplier of goods or services.
ease of doing business. This reform has bound
India to a unified taxation system. As a result, 2. Tax refund through Input Credit System
business activities in the country have increased, a From the time a commodity is produced, till it reaches
new era of economic prosperity has begun, and the the hands of the final consumer, there is a process of
country's GDP is steadily increasing. Simply put, the buying and selling many times. Now since in the GST
GST system has simplified India's tax system and system tax has to be paid on every purchase and sale. In
instilled new confidence in businessmen. Doing such a situation, the goods should become very expen-
business in India has become easier. Not only sive by the time they reach the final consumer. But this
that, but with India's goal of becoming a $5 trillion does not happen because the input credit system is
economy and a developed India, GST is going to applicable in this. In this system, wherever tax has been
be a turning point. On July 1, 2017, the Goods and deposited on that item before the tax is levied at the last
Services Tax (GST) went into effect. It has now stage, there is also a system to get it back.
been six years. It is necessary to understand the
n For example- If you are not the final or actual con-
sumer and you have deposited GST at any earlier
stage, you get credit for the same. You can use these
credits while paying GST to the government.
n You can get your credit adjusted through the Tax
Credit System while filing GST returns every month.

entire journey to better understand its success.

GST: Pre and post situation
Prior to GST, India had one of the world's worst
indirect tax regimes. The central and state
governments could also levy various types of taxes.

14 New India Samachar July 1-15, 2023