The single-rate GST regime can be a reality in 3-5 years

Jay Sairam


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New Delhi: Chief economic advisor Arvind Subramanian said on Monday that India can go to the sole rate for goods and services tax (GST) in the next three-four years, but the indirect tax system imposed in July last has been asked for more relevance. .
The comments of the Chief Economist of the government, by their economic survey and their team, have suggested that GST has started well, because collections in collections are estimated to be around 12%. The document presented in Parliament stated that "in the initial phase of such a major disruptive change, this performance is significant." GST promises to be a happy source of future revenue.

Belying "confusion and anxiety" surrounding GST collections, the survey said the uncertainty will be removed once the system stabilises later this year.
"But the provisional assessment is this: Revenue collection under the GST is doing well, surprisingly so, for such a transformational reform," it said, adding, the tax that GST has subscribed to 2016-17 .

However, despite policy makers initially enthusiastic, the collection declined for a few months and some concerns arose before the recruitment in January and some rested. Subramanyam admitted that there are currently many rates, which need to be improved, but the fact is that the current average rate of 15.6% is 15-16% of the neutral rate which is recommended by the panel headed by them. .

The survey noted that the base of the indirect taxpayer has increased by more than 50 percent, 34 lakh businesses come in the tax net, the leadership of voluntary registration, especially by small enterprises, is bought by big businesses and wants to use the input tax credit themselves. Turnover Rs. Nearly 17 million industries registered under GST, despite being below the threshold limit of 20 lakhs
Map data by the government shows that Maharashtra, UP, Tamilnadu and Gujarat are the biggest figures, while the number of new taxpayers in UP and West Bengal has been highest. The worrying trend was that about 47 percent of the tax was in five states - Maharashtra (16 percent), Tamil Nadu (10 percent), Karnataka (9 percent), Uttar Pradesh (7 percent) and Gujarat (6 percent). "Distribution of GST basis in states is closely related to the size of their economy, the main producer removes the fears of states, and changes in the new method will reduce their tax collection," said Carden, the economic report of the government.

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