Considering the flaws in the existing structure, a renewed Good and Services tax regime is the need of the hour for strengthening the tax base of the country. Explain (200 Words)
Refer - The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· The GST is strongly co-related to overall GDP. Revenue collection of the GST is dependent on the nominal growth rate of Gross Value Added (GVA) in the economy.
· The Tax to Gross value addition is only about 5% to 6.5% though GVA growth was much higher.
· In the voting, the central government has one-third vote and States have two-thirds of total votes.
· Nearly 45% to 50% of commodity value is outside the purview of the GST, such as petrol and petroleum products.
· States which export or have inter-State transfers or mineral and fossil fuel extractions are not getting revenue as the origin States and need a compensation mechanism.
· Exemptions from registration and taxation of the GST have further eroded the GST tax base compared to the tax base of the pre-existing VAT.
· While most countries have a single rate, India stands out and is among the five countries to have four rates/slabs.
· Petroleum products remaining outside the purview of GST has helped the Centre to increase cesses and decrease central excise.
· Policy gaps along with compliance gaps do need to be addressed. Without proper tax information, infrastructure and base, the States would go in for selective tax enforcement.
ANIL KUMAR RAM 5 years
Please review
IAS Parliament 5 years
Good attempt. Keep Writing.
ANIL KUMAR RAM 5 years
Soni Kumari 5 years
Please review sir
IAS Parliament 5 years
Try to include about flaws. Keep Writing.
Abdul hakkim 5 years
Please review mam/sir
Thanks
IAS Parliament 5 years
Try to include some points on renewed GST reforms. Keep Writing.
Swapnali Vijay Gawande 5 years
IAS Parliament 5 years
Try to provide proper conclusion and explain flowchart briefly. Keep Writing.
