Eight months before now, the nation encountered a complete overhaul of the taxes. And replacing all the old taxes came into the taxpayer’s lives the Goods and Services Tax Act. This new taxation rule subsumes the earlier big chunks of the taxes like VAT, excise duty, service charge etc. It has also helped in cutting out the cascading effects of the multiple taxes that was also responsible for weakening the economy and Indian market altogether.
Amazingly, post the implementation of GST, more than 1.03 crores businesses registered under the regime. Although, the reason behind the government being able to achieve such high numbers in the span of only eight months is a bit frightening. The government, hoarse from shouting, miffed the taxpayers by notifying infinite times about the importance of the Goods and Service Tax Act. And that move even worked for the government. The businesses started pouring in their time and effort for the regime’s success and it ultimately led to:
- The registration of more than 68,000 new companies.
- The grand revenue collection crossing the INR 90,000 crores mark.
- The facilitation of the Input Tax Credit to the thousands of businesses.
One must wonder the technique or approach being adopted for making the businesses agree to register in such lathe numbers. However, the government holds a complete credit for the achievement but the technology plays an important part too. The high-quality online software not only made the taxation process easier but also the businesses become tech-savvy. The Goods and Services Tax Identification Number (GSTIN) is the primary objective of the businesses post registration under GST.
Without GSTIN handy, you cannot proceed with other GST processes like filing the return filing and claiming for the tax paid on inputs. If done manually, the registration process might lag and to receive GSTIN could take forever. Eliminating such hassle, the software eases both, GST registration online and then retrieving GSTIN. Since the businesses found the software cooperative having many other additional benefits, they started registering under the regime without the hesitation of high-cost or time involvement.
According to the GST bill latest news, the government is planning to implement changes in the regime to attract more taxpayers comply with GST. It wouldn’t be apt to mention the fact that the people weren’t able to comply with the regime in the beginning. The contrary thought of the businesses for GST was the result of complete digital nature of the regime. Thus, the government decided to make the below-mentioned changes to make sure that the taxpayers remain unruffled:
1. A lesser number of returns- Beginning to anguish about the complexity of GST, the taxpayers get relief from the government. The government would soon be reducing the number of returns to be filed in a financial year. You would be only required to file monthly return (in the place of three returns in a month). And if you have been filing nil returns since last six months, then the government has a great fix as you would be required to file returns bi-annually.
2. E-way bill implementation- The government is leaving no corners dusty in order to ensure that there is no tax evasion. Previously, the transportation and logistics sector helped hide many fraud businesses evading taxes. These businesses have also shammed GST registration online in the past. Now, the government has come up with e-way billing under which every consignment will be scrutinized and kept in the records for the future reference. For every 50 kilometers the vehicle carrying the goods and services travels would be provided an e-way bill.
3. Subsuming tax categories- Increasing the possibilities of a simpler taxation system, the government might also either
- Reduce the tax slab percentage.
- Combine the tax percentage of 12% and 18% into one. This move is also proposed to eliminate the strain from the taxpayer’s shoulders.
4. Anti-profiteering body- The key feature of the regime is to provide the manufacturers the benefit of the taxes paid on the raw materials or inputs. This credit, once received by the manufacturer is supposed to the customers as well. But lately, the manufacturers have been, instead of reducing the prices, were hiking them putting all the blame on them. The government would now hit the nail on the head assigning the anti-profiteering authorities to watch such businesses over.
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Before the government could entirely shift its focus on increasing the tax revenues, there are various other matters that need to be sorted. The problems with the return filing mechanism and input tax credit could cause hindrance in the seamless implementation of the Goods and Services Tax Act all over. Once the government revamps the taxation process and launches it in a phased manner, the revenues will rise undoubtedly.