Good And Services Tax (GST) Flashcards
Q. What are some key facts about GST ?
Ans : 1. Unified tax system that replaced multiple indirect taxes levied by central and state govt.
2. Implemented on 1st July 2017.
3. Dual structure, comprising CGST and SGST; IGST is also levied on interstate supplies.
4. GST council : Under article 279A ; Union Finance Minister as chairperson.
Q. What was the need for implementing GST ?
Ans : 1. Establishment of a single national market .
2. Complicated Taxation Regime.
3. Issues like Tax Cascading .
4. Need for incorporation of technology.
5. Limited Ease of Doing business.
6. High cost of tax collection .
Q. What was the impact of GST ?
Ans : 1. Push for Cooperative Federalism.
2. Reduction in tax burden.
3. Benefits to MSME’s : Easing of compliance burden through measures like composition scheme, QRMP ( quarterly return with monthly payment ) , optional annual return.
4. Increased revenue collection : 12% higher from June 2022 to 2023.
5. Increase revenue/tax buoyancy
6. Market integration and ease of doing business.
Q. What are the challenges in the effective implementation of GST ?
Ans : 1. Technology glitches : GST portal and e-way billing .
2. Absence of GST Appellate Tribunals (GSTATs) : Tax payers must approach HCs.
3. Erosion of taxpayers’ trust : Arbitrary cancellations of GST registrations and disproportionate denials of input credits.
4. Tax evasion and Fraudulent claims .
Q. What are the steps being taken to improve GST ?
Ans 1. Information sharing : Between ED and GSTN .
2. Increased Technology Penetration : ITC verification, e-way bill verification.
3. Tighten registration norms : biometric authentication and geo-tagging .
4. Tightening of Return Filing system : Against misusing PAN and Aadhar identification to obtain GST registration.
Q. What are some “Way forwards” to further refine GST ?
Ans : 1. Rationalisation of tax rates : for ease of compliance and free flow of refunds and credits .
2. Legal and administrative changes .
3. Use of technology: e-returns, e-voices, e-way bills, aadhar authentication etc
4. Streamlining of audits, assessments and investigations .
5. Expansion of tax network : Alcohol, Petroleum and other products can be brought under the ambit of GST.
