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GST lowered tax charges, companies with annual turnover of as much as Rs 40 lakh are actually GST exempt: Finance Ministry | Economic system Information

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New Delhi: The Finance Ministry on Monday posted a sequence of tweets, on the primary dying anniversary of former Finance Minister Arun Jaitley, remembering his contribution in the direction of the profitable implementation of the Items and Providers Tax.

As we bear in mind Arun Jaitley immediately, allow us to acknowledge the important thing function he performed within the implementation of GST, which is able to go down in historical past as probably the most basic landmark reforms in Indian taxation, the Ministry tweeted.

GST, which subsumed about 17 native levies, was rolled out on July 1, 2017. Jaitley held the finance portfolio within the first time period of the Modi authorities since 2014.

The Finance Ministry tweeted that GST has lowered the speed at which individuals must pay tax and helped enhance compliance and doubled taxpayer base to 1.24 crore.

GST has lowered the speed at which individuals must pay tax. The income impartial price as per the RNR (Income Impartial Fee) Committee was 15.three per cent. In comparison with this, the weighted GST price at current, in response to the RBI, is barely 11.6 per cent, the ministry stated.

Companies with an annual turnover of as much as Rs 40 lakh are GST exempt. Initially, this restrict was Rs 20 lakh. Moreover, these with a turnover as much as Rs 1.5 crore can go for the Composition Scheme and pay just one per cent tax.

As soon as GST was applied, the tax price on a lot of gadgets was introduced down. As of now, the 28 per cent price is sort of solely restricted to sin and luxurious gadgets. Out of a complete of about 230 gadgets within the 28 per cent slab, about 200 gadgets have been shifted to decrease slabs, the ministry stated.

Additionally, the housing sector has been positioned within the 5 per cent slab, whereas GST on inexpensive housing has been lowered to 1 per cent.

All processes in GST have been totally automated. Until now 50 crore returns have been filed on-line and 131 crore e-way invoice generated, the Ministry added.

Earlier than items and companies tax (GST), the mix of value-added tax (VAT), excise, gross sales tax and their cascading impact resulted in excessive customary price of tax as much as 31 per cent, the ministry tweeted.

It’s now broadly acknowledged that GST is each client and taxpayer-friendly. Whereas the excessive tax charges of the pre-GST period acted as a disincentive to paying tax, the decrease charges beneath GST helped to extend tax compliance, the ministry stated.

The variety of assessees coated by the GST on the time of its inception have been about 65 lakh. Now the assessee base exceeds 1.24 crore.

 



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