Seven years of GST: Its adoption has been a remarkable success
₹1.73 trillion. The average in the early phase was about ₹ 0.9 trillion, which today hovers at upwards of ₹ 1.5 trillion. The relevant data reveals a widening of the tax base, increased compliance, plugged leakages and better enforcement.
A hat-tip to the GST Council is first in order. It is India’s largest and most successful Constitutional body till date; most recommendations emerged by means of a consensus among members, with voting seldom required. And the Council has ably guided and shaped GST in India.
The motto, “One nation, One market, One tax," captured how GST aimed to eliminate inter-state barriers to trade, fostering economic integration and enhancing the ease of doing business. The labyrinthine structure of the erstwhile indirect taxes regime often hindered inter-state trade, burdened businesses with multiple compliance requirements and bred inefficiencies in the supply chain. The GST regime brought the nation under one umbrella by subsuming 17 taxes and 13 cesses; its architecture was a winner from the beginning.
It has eased how we do business in India; no longer do we witness goods carriers queuing up at octroi or entry tax check-posts for hours on end. Let’s take a closer look through four prisms. Digitalization: GST has been in consonance with the clarion call for a ‘Digital India.’ The tax system is nearly fully digital, making it ready for the future.
Technology was harnessed from the get go, starting with registration to all compliances and filings being done online via the GSTN portal. The Revenue Department has taken to data analytics and various technology-enabled tools to assist it during audit and assessment proceedings. After overcoming initial teething issues, including a still-born credit
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