Nirmala Sitharaman on GST: According to Union Finance Minister Nirmala Sitharaman, the Goods and Services Tax (GST) has brought down tax rates compared to the previous government, resulting in justice for consumers. She also highlighted that GST has increased tax buoyancy for both states and the central government.
“GST has achieved justice for consumers by reducing tax rates compared to the previous regime. Prior to GST, India’s indirect tax system was fragmented, with each state operating as a separate market for industries and consumers. GST has improved tax buoyancy, leading to significant growth in tax collections. Therefore, both the center and the states are reaping the benefits. We must debunk the misconception that states are losing out since the implementation of GST. Even in the face of COVID-19, no state is suffering due to GST,” explained Union Finance Minister Nirmala Sitharaman.
‘Gabbar Singh’ Tax:
In a veiled attack on Rahul Gandhi for labeling GST as the ‘Gabbar Singh’ tax and criticizing it for increasing burden on citizens, the Union Finance Minister denounced the statement as shameful. Sitharaman emphasized that GST has actually provided relief to the common citizen.
“On hair oil, toothpaste, soaps, perfumes, and detergents, the average pre-GST tax burden was nearly 28%, which has been reduced to 18% under GST. These are tangible figures. So, if someone claims that GST has increased the burden and resorts to calling it the ‘Gabbar Singh’ tax, it is truly a shame because this country should recognize that GST has actually brought relief to the common citizen,” asserted the Union Finance Minister.
Sitharaman further highlighted that many common-use items and services have been completely exempted from GST to benefit the people. “Numerous common-use items and services, such as unpackaged food items like rice, wheat, flour, and curd, as well as healthcare, educational, public transportation, and agricultural services, have been exempted from GST,” she added.
As for revenue collections, India’s gross Goods and Services Tax (GST) revenue for June amounted to Rs 1,61,497 crore, marking a 12% increase compared to the same month last year, according to the Ministry of Finance.
“In June 2023, the gross GST revenue collection amounted to Rs 1,61,497 crore, with CGST at Rs 31,013 crore, SGST at Rs 38,292 crore, IGST at Rs 80,292 crore (including Rs 39,035 crore from imports), and cess at Rs 11,900 crore (including Rs 1,028 crore from imports). The government has distributed Rs 36,224 crore to CGST and Rs 30,269 crore to SGST from IGST. After the regular settlement, the total revenue for the center and the states in June 2023 is Rs 67,237 crore for CGST and Rs 68,561 crore for SGST,” reported the Ministry of Finance.
This is the fourth time that the gross GST collection has surpassed the Rs 1.60 lakh crore mark.
(With inputs from agencies)
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
