The broad notion on GST from the economic perspective can be that of a very optimistic and consumer-centric tax regime. This can be clearly noticed from the rising tax base and conducive impact on the traders having GST registration, during the current fiscal year.
In a bid to further simplify the Goods and Services Tax, the honourable Prime Minister of India Sh. Narendra Modi has announced that the government would soon ensure that 99% goods attract sub-18% GST slab.
While announcing the same, the Prime Minister has also pointed towards swelling of the number of traders having GST registration. He has told that prior to the inception of the GST regime in India, there were only 65 lakh businessmen having a valid tax registration. During the first year of GST, the number of businessmen having a GST registration has now risen by 55 lakh.
#1. WHAT DOES THE ANNOUNCEMENT SIGNIFY?
Prime Minister Modi Ji has predicted that very soon, all things relevant to common men will be available at GST@18% or below. This implies that GST on 99% of articles will be up to 18%.
Added to it, he has said that GST must be made as simple and as favourable as possible for all enterprises having a GST registration.
Resultantly, essential commodities such as cement, marble, air-conditioners, washing machines, dishwashers and many other such items would now become cheaper.
Importantly, there are about 40 broad types of commodities that are included the highest GST slab.
#2. WHICH GOODS ARE TO BE PLACED IN 28% GST SLAB?
The Prime Minister has indicated that as earlier, the 28% slab of GST would only be confined to a few select commodities, such as luxury items e.g. luxury cars and planes; and 'demerit' (sin) goods such as tobacco, pan masala and cigarettes.
#3. HOW MUCH RISE IS THERE IN THE NUMBER OF FIRMS HAVING GST REGISTRATION?
According to the PM, before the GST was implemented in July 2017, the enterprises having GST registration 6.6 million were around in number. That number has now risen to 12 million.
#4. WHEN WILL THE GST RATE CHANGES BE IMPLEMENTED?
The changes in GST rate as announced, are likely to be implemented in the 31st GST council meeting, which is scheduled to be held on 22nd December 2018.
With that, Prime minister has acknowledged the cooperation of Indian taxpayers towards making GST a grand success-
"We see that even developed countries sometimes find it too difficult to implement trivial tax reforms. No doubt, the contribution of everyone in India has made the GST regime a success today."