Loss of revenue due to GST, claims chairman of PM’s Economic Advisory Council
[ad_1]
GSTVivek Debroy, chairman of the Prime Minister’s Economic Advisory Council, said on Tuesday that the government is losing revenue due to the Goods and Services Tax (GST). He said it should be ‘revenue neutral’ with a single rate. Although he also said in the program of Industry Board Calcutta Chamber of Commerce that things have become much easier with GST. Debroy said the ideal GST is one that has a single rate and the aim was to be revenue neutral. According to the finance ministry’s calculations, when GST was first implemented, the average rate should have been at least 17 per cent. But the current rate is 11.4 percent. The government is losing revenue due to GST.
Vivek Debroy, Chairman of the Prime Minister’s Economic Advisory Council, said that along with the public, the members of the GST Council also want the tax rate to be reduced to 28 percent. But no one wants zero and three percent tax rates to increase. In this way, we will never have a simplified GST, he said in a ‘special session on strong and self-reliant India’. Debroy said that there is a lot of misuse of GST provisions. However, he did not elaborate on this.
What is GST tax
GST (Goods and Services Tax) is a general tax or tax imposed by the Government of India. This tax is applied on sales, distribution and services in India and prefers a single updated tax system across the country. The main objective of GST is to integrate the taxes applicable at different levels in India into a single common tax system. By eliminating many types of taxes, it becomes easier to do business projects and promotes domestic development.
GST is divided into three parts
GST tax is mainly divided into three categories by the central government. One of these is CGST (Central Goods and Services Tax, CGST). This tax is implemented by the Central Government and it is applicable on sales and services which are in the territory of the Central Government. At the same time, the second is CGST (State Goods and Services Tax, SGST), this tax is implemented by the state government and it is applicable on the sales and services that take place in the territory of the state government. IGST (Integrated Goods and Services Tax, IGST) This tax is applicable on inter-state sales and services when goods or services are transmitted from one state to another. Under GST, the same Goods and Services Tax rates have been prescribed for products and services, which are divided on the basis of different types of products and services. This makes for a procedural and easy way of levying tax on goods and services. Please note that GST policies and tax rates are subject to change from time to time, therefore you should seek accurate and reliable information from local authorities.
,with language input,
[ad_2]
Source link
