The GST Council must act quickly to implement pending reforms, such as rationalizing the complex tax structure and bringing excluded items like electricity and petroleum products into the GST net, to make the Goods and Services Tax a truly “Good and Simple Tax” as originally envisaged.
– GST revenues hit a record high of ₹2.1 lakh crore in April 2024, with May revenues being the fifth highest ever at ₹1,72,739 crore.
– Revenues have generally grown at least 11% in the nearly three years since the second COVID-19 wave, allaying earlier concerns about underwhelming GST collections.
– Domestic revenue growth has been uneven across states, with five recording a decline in May and eight growing far slower than the national average.
– Revenues from goods imports dipped for the second time in three months, even as domestic transaction revenues grew 15.3%.
– The GST Council must press ahead with its pending reform agenda, including rationalizing the complex, multiple-rate structure and bringing excluded items like electricity, natural gas, and petroleum products into the GST net.
– Simplifying compliance for smaller firms and large businesses alike is also needed to make the GST a truly “Good and Simple Tax.”
– The GST Council, which is usually expected to meet every quarter, has been convened just six times since 2022, and must resolve to meet more often to address these pressing issues.
Source: thehindu.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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