July 2022
Legist Newsletter
Issue: July, 2022
For Private Circulation Only
Welcome readers, to this year’s seventh issue of Legist.
This July, in the relevance of the GST Day, we present to you the most ambitious and remarkable indirect tax reform in India’s post-Independence history and how it’s implementation, the government aimed to replace the multi-layered and complex indirect tax structure with a new, transparent, simple, and technology-driven tax regime.
The GST Day was first celebrated on July 1, 2018, to mark the first anniversary of the new tax regime. The taxation system was inducted to break the barriers in inter-state trade and commerce and integrate India into a single, common market. It is in line with the Make in India campaign and aims at achieving the goal of One Nation, One Tax, and One Market. The objective of implementing GST is to enhance the ease of doing business in the country and reduce transaction costs by eliminating the old form of taxes.
By improving efficiency, it can add substantially to growth as well as government finances. Implementing a new tax, encompassing both goods and services, by the Centre and the States in a large and complex federal system, is perhaps unprecedented in modern global tax history.
In our first article, we discuss in detail the evolution and historical background of GST in India in consonance with the Constitutional Framework of Indian Tax System. The second article traces the impact of GST on Indian Economy and how growth was affected by the Pandemic and the factor that will help improve the GDP of the nation.
We hope you find this issue of Legist informative and interesting.
Happy reading!
The Evolution of GST in India
Rishabh Moon and Tanveera (Research and Editorial)
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The Impact of GST on the Indian Economy
Rishabh Moon and Tanveera (Research and Editorial) The introduction of the Goods and Services Tax (GST) in the economy resulted in the creation of a fully digitised tax administrative structure, which in turn facilitated the free flow of information and the availability of standardised datasets. Even after the first three years of the reform had passed, India and the world economy continued to be tormented by the uncertainty of a pandemic, which resulted in global lockdowns and interruptions to supply chain operations. This has a significant influence on growth, GDP, and revenues of GST. However, as a result of the economic recovery, the Goods and Services Tax (GST) has emerged as a robust source of income for both the central government and the individual states. Since October of last year, the total amount of GST collected has reliably surpassed 1 trillion rupees (except for two months). Gross revenue from the GST was 1.2 trillion rupees per month on average in 2021-2022, which is an increase from 1.02 trillion rupees in 2019-2020 and 945 billion rupees in 2020-2021. This article brought to you by Tanveera and Rishabh Moon addresses the impact of GST on Indian economy and it can be concluded that the industry has responded positively to the systemic changes implemented by the government and will have positive impact in long run on the Indian economy. |
