Goods and Services Tax (GST) is celebrating 6 years of success. Among the fresh introductions are – Now taxpayers under GST will be able to explain the mismatch in their inward and outward supply filed in tax return on the GST portal itself, without risking a notice from the tax authorities.
The Centre Board of Indirect Taxes and Customs (CBIC) has developed a functionality in its portal which will allow the taxpayers to find their exact tax liability on the real basis, giving them opportunity to explain any discrepancy in tax returns before issuing any tax before issuing any tax demand.
The ‘Good and Simple Tax’ in India, known as the Goods and Services Tax (GST), has successfully completed six years since its implementation on 1 July. The GST was introduced with the aim of achieving various objectives, including simplifying the tax structure, reducing costs for consumers, widening the tax base, and improving compliance through technology.
Before the GST, taxpayers faced difficulties due to multiple tax laws at the central and state levels, each with its own compliance requirements. The GST regime has simplified compliance for taxpayers by merging various indirect tax laws and establishing a unified tax system and procedures. This unified system operates through the pan-India GST Network, streamlining the entire compliance process.
6 Years of GST : A success story to be told
The implementation of GST has made it easier for taxpayers to comply with tax law & this can be seen in the fact that the number of registered taxpayers has increased from 1.03 crore taxpayers that enrolled into GST by April 1, 2018 to 1.36 crore by April 1, 2023. #6YearsofGST
During the past six years, both the central and state governments have taken steps to alleviate the compliance burden by implementing changes in the legal framework and leveraging technology. For instance, the Quarterly Returns with Monthly Payment (QRMP) scheme has provided significant relief to small and medium taxpayers. It allows them to file returns on a quarterly basis while still receiving monthly input tax credit. Additionally, small taxpayers can now file a ‘nil’ return simply by sending an SMS, and those availing of the composition scheme only need to file a yearly return, reducing the compliance requirements for them.
Goods and Services Tax (GST) has acted as an engine for driving domestic consumption and helped households save on monthly bills since its implementation six years ago, the government said on Friday.
Giving a comparison of the tax rates of various goods pre and post-GST rollout, the government said from streamlining processes to boosting investments, GST has been a catalyst for progress.