GST: Cumbersome or Uncomplicated?Shambhavi Sharma / 2021-04-09 11:46:47
On 6th April, 2021, the Apex Court said that the main aim to introduce GST was to make it a citizen friendly tax structure but this is not the case now. Its enforcement is making it even more difficult for the citizens.
The tax burden that falls on both businesses and consumers was one of the key reasons for GST's introduction in India. Multiple taxes were added at each point of the supply chain under the old tax scheme, with no credit given for taxes paid earlier.
As a result, the final sales cost did not clearly reflect the real cost of the product and the amount of tax that was added. This cascading mechanism was both inefficient and overly complex.
GST was to combine most taxes into a single tax that will apply to the selling and purchase of goods and services, with exemptions for taxes collected at earlier stages of the supply chain. Both the government and business owners should have found it easier to monitor this structure.
Aims of GST-
The primary goal of GST is to establish a single market in India with a uniform tax rate. (A single nation, a single tax, and a single market)
GST allows set-off of previous taxes for the same transactions as input tax credit to avoid the cascading impact of taxes.
To further boost Indian exports, the GST collected on inputs will be refunded, and all exports will be tax-free.
Increase tax revenue and expanding the tax base by taking in more taxpayers.
To make tax return procedures easier by using standard forms and avoiding the need to visit tax departments.
To have online services for tax payment and form submission. The GST has been implemented using the Goods and Services Network (GSTN), a robust information technology infrastructure. The businesses would be required to get GST registration.
Why has GST become cumbersome for some?
After implementation of GST, the services people availed before for cheaper now became costlier. People also found it difficult to shift to a new tax system. Not only common man but business people also had to change their way of conducting business. Initially, the inflation too became a problem.
It also became a problem for small business owners as they were hesitant to shift to a whole new tax system. The state wise GST registration process was also tiring.
The Government and Parliament must devise a better implementation plan to roll out GST, otherwise, rather than proving to be beneficial for people, it will become troublesome. The Judiciary has already give its viewpoint and now it’s up to the government.