As the Goods and Services Tax (GST) completes its 2 years on July 1, the Finance Ministry yesterday has unveiled a new return filing mechanism, among a string of others to simplify the indirect tax system. Since long, the GST has been back lashed by parties of opposition, comprehending to its complexities and chaotic implementations.
The finance Ministry has decided to rationalise cash ledger system and introduce a single refund-disbursing mechanism.
More on the Single-Refund Disbursement
The introduction of GST was a game changer for the Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime. Coming into effect since July 1, 2017, the GST regimes have seen a number of changes in it. For its third year now, the ministry has yet another change for it, include a list of more.
As we mentioned above, the new cash ledger system will be chaired by the Minister of State for Finance and Corporate Affairs Anurag Thakur with other key secretaries and officials from various departments present alongside. It will be introduces on trial basis from July 1 and on mandatory basis from October 1.
In this, Sahaj & Sugam returns for small taxpayers are proposed. The govt shall rationalise the ledger in a way that 20 heads are merged into 5 main ones. There shall be just one cash ledger for tax, interest, penalty, fee and others.
A single refund-disbursing mechanism will come into play wherein the government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and cess.
How Has GST Helped States over Centre
GST seems to have an advantageous catch to the states than the Centre. Not only do they receive a larger share of the overall revenue but also the the revenue gaps have reduced for states and Union Territories.
Revenue wise, the share of SGST in FY18 was Rs 1.71-lakh crore out of a total mop-up of Rs 7.4-lakh crore. Similarly, in FY19, SGST’s share was Rs 2.78-lakh crore out of Rs 1.77-lakh crore. It is also expected that GST 3.0 will be more technology driven than the earlier avatars.
GST has been a great initiative by the GOI and has integrated India into a single common market by breaking barriers to inter-state trade and commerce.
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