Finance Minister Nirmala Sitharaman has said that the Goods and Services Tax (GST) regime has reduced the tax burden on people and created an efficient federal institution with high revenue buoyancy for states.
Speaking at an event on Saturday, Sitharaman said that the GST regime is an "exemplar" that has brought ease of compliance and reduced tax burden on people. She said that the weighted GST rate at present is only 11.6%, compared to the revenue neutral rate of 15.3%.
Sitharaman also said that the GST regime has created an efficient federal institution with high revenue buoyancy for states. She said that the monthly GST collection has crossed ₹1.6 lakh crore, which is the new normal.
The finance minister said that the GST regime has also helped to boost the manufacturing sector and exports. She said that the GST regime has created a level playing field for businesses across the country and has helped to reduce the cost of doing business.
Sitharaman said that the GST regime is a "work in progress" and that the government is committed to making it even more efficient and beneficial for people and businesses.
Here are some of the key benefits of the GST regime
- Reduced tax burden on people: The GST rate is lower than the combined rate of taxes that were levied before the GST regime. This has led to a reduction in the tax burden on people.
- Ease of compliance: The GST regime is a single tax system that has replaced multiple taxes that were levied by the central and state governments. This has made it easier for businesses to comply with tax laws.
- Increased revenue buoyancy: The GST regime has led to increased revenue buoyancy for states. This is because the GST is a destination-based tax, which means that the revenue from the GST is collected by the state where the goods or services are consumed.
- Boost to manufacturing and exports: The GST regime has boosted the manufacturing sector and exports. This is because the GST has reduced the cost of doing business in India.
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