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TMI BlogGST @ SEVEN YEARS IN INDIAX X X X Extracts X X X X X X X X Extracts X X X X ..... GST @ SEVEN YEARS IN INDIA - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 4-7-2024 - The Goods Services Tax a seven year old tax regime in India. The GST tax regime appears to have more or less stabilised, which is evident from the steady increase in its collections over the seven-year journey. Average monthly GST collection rose from Rs. 90,000 crore during the first year o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f its implementation 2017-18 to 1.68 trillion during 2023-24, representing 87 per cent rise. Along with expanding the scope of GST to petroleum, particularly petrol and diesel, reducing the tax slabs and reducing the tax rates are important pending reforms of this indirect tax regime. There is a clear call from businesses for the next phase of GST reforms GST 2.0. The GST is still a work in progre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss as the law and procedures are still evolving and getting refined and fine tuned. The 53rd GST Council meeting, first after election and first in 2024 was held on 22 June, 2024 at New Delhi. Since the meeting was held after a gap of more than eight months, there were a lot of issues deliberated and decided, more so in view of the forthcoming Union Budget in July, 2024 in which legislative change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s will be effected. The 53rd GST Council meeting chaired by Finance Minister aims to ease the compliances for taxpayers by making provisions and procedures simpler and less cumbersome. Post 53 rd GST Council meeting held on 22.06.2024 , CBIC has issued 16 Circulars bearing Nos. 207 to 222, all dated 26.06.2024 , clarifying taxability, place of supply, time of supply etc on various issues. These ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been summarized inside in GST Update column. The age old criminal laws in India have now migrated to new laws w.e.f. today, 1 st July, 2024. The three new laws viz, Bharatiya Nyaya Sanhita (BNS), Bharatiya Nagarik Suraksha Sanhita (BNSS) and Bharatiya Sakshya Adhiniyam (BSA) come into force w.e.f. 01.07.2024, replacing the British period laws - Indian Penal Code (IPC), Code of Criminal Procedur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (CrPC) and Indian Evidence Act. The BNS has 358 sections (IPC had 511) though 21 new crimes have been identified. These laws are expected to simplify the law as well as ease the implementation. GST law heavily depends on these legislations, particularly in provisions relating to criminal offences, prosecution, search, arrest etc. GST collection in India has grown in June, 2024 too but at a slowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r pace, growth being in single digit only on YoY basis (7.7%). Collection growth was 12.4% and 10% in April, 2024 and May, 2024 respectively. While the MoF has decided to discontinue with official release of monthly GST collection, as per media reports, for the reasons not known, the MoF has been releasing the GST data on first of every month since last seven years (74 months) and such a decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coincides with 7 th anniversary of GST in India. The gross GST collection for June, 2024 is reported to be Rs. 1.74 lakh crore. The GST taxpayer base has increased to 1.46 crore in April, 2024 against 1.05 crore in April, 2018. Indirect Taxation in India Then Now Multiple taxation levies and cesses GST one nation, one tax Cascading of taxes Seamless input tax credit for all taxes Fragmented VAT pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inciples Holistic application under GST Regional imbalances Equitable distribution of revenue Barrier to inter-state trade Seamless flow of goods No e-way bills E-way bills Less revenue collection More revenue collection 7 Gains Integration of indirect taxes Online compliances Tax cascading reduced substantially Reduced physical interface with tax department Increased transparency in tax implement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations Reduced transaction costs and unnecessary wastages Reduced corruption 7 Pains Distorted input tax credit Too much and too frequent compliances Old mindset of officers Lack of trust between tax collectors and tax payers, important pillars of economy No appellate tribunal yet Multiple tax slabs Lack of coordination between various limbs of GST Administration 7 Challenges Interpretational issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Increased litigation and setting up independent appellate forum Alternative for compensation to states Fake invoices menace and rampant tax evasion Corruption Divergent advance rulings Levy of GST on petroleum products / electricity 7 Opportunities Further comprehensive tax reforms Integration of economy and contribution to GDP Ease of doing business Buoyant tax collection Transparent, accounta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble and fair just tax administration Expansion of tax base Increased direct indirect employment 7 Suggestions Change in attitude, mindset to be more taxpayer friendly Practical approach to handle taxpayers / non-compliances Make input tax credit smooth and seamless Offer fair tax grievance redressal mechanism Faster and unbiased adjudication Reduction in number of tax slabs / rates Prioritize refo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms in GST rates and procedures Notifications and Circulars issued in 2023 / 2024 (Till 30.06.2024) Particulars 2023 2024 Central Tax 56 11 Central Tax (Rate) 20 1 Integrated Tax 5 - Integrated Tax (Rate) 23 1 Union Territory - - Union Territory (Rate) 20 1 Compensation Cess 1 - Compensation Cess (Rate) 3 - Circulars 18 (189 to 206) 16 (207 to 222) 7 most litigated issues in GST in last seven year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Fake invoices / frauds Detention and seizure of goods and conveyances Mis-match in GSTR-3B and GSTR-2A (Input tax credit) Investigation and search Arrests and Bail Transitional credit issues Cancellation restoration of registration - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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