Finmin claims lowered household products tax rates and improved every home

The Finance Ministry celebrated the seventh anniversary of the Goods and Services Tax’s (GST) introduction on 1st July and claimed that by lowering taxes on necessities like cell phones and appliances, the GST has significantly benefited people.

When the GST was introduced on July 1, 2017, it largely replaced about 17 local taxes and cesses. “Sashakt Vyapar Samagra Vikas” (Empowered Trade Overall Growth) is this year’s theme for GST Day.

The finance ministry emphasised that houses have experienced relief and satisfaction as a result of the lower tax rates on domestic products after the GST. “With reduced tax rates on household goods after GST implementation, 7 years of GST has brought happiness and relief to every home through lower GST on household appliances and mobile phones,” the ministry said on social media.

Read Also: GST Collection June 2024: GST revenue increased by 8% to ₹1.74 lakh crore

The GST taxpayer base has grown significantly since it was implemented, from 1.05 crore in April 2018 to 1.46 crore in April 2024. According to Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal, “we have witnessed a quantum jump in the taxpayer base along with improved compliance,” as reported by PTI.

The ministry has issued comparative charts that demonstrate how the GST has reduced the cost of living by cutting the price of food and mass-consumption commodities. Under the GST, food commodities that were formerly subject to levies ranging from 2.5 to 4 percent, including unpackaged wheat, rice, curd, and lassi, are now tax-free.

Read Also: GST: Biometric-based Aadhaar authentication for new registrations

Additionally, under the new excise and VAT system, the tax rate on domestic items has decreased from 28 percent to 18 percent. This includes cosmetics, watches, hygienic plastic ware, doors and windows, furniture, and beds. Previously subject to a 31.3 percent tax rate, necessities such as fans, refrigerators, washing machines, geysers, mobile phones, and 32-inch TVs are now subject to an 18 percent tax rate.

The ministry also stressed that small taxpayers would have less work to do in terms of compliance. The GST Council has suggested exempting taxpayers having a combined yearly revenue of up to Rs 2 crore from the requirement to file an annual return in the fiscal year 2023–2024. For more than 44 lakh small taxpayers, the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) programme has reduced the number of returns filed yearly from 24 to 8. Furthermore, the Invoice Furnishing Facility (IFF) has made sure that the Input Tax Credit (ITC) flows smoothly.

The introduction of the GST has not only made the tax system simpler, but it has also encouraged growth and compliance, which has benefited both individuals and companies in a real way.

Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

For Collaborating with us-

Tags: Uncategorized

Related Articles

No results found.

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed