One year of GST: New tax regime failed to realise expected benefits; learn why
The Goods and Services Tax (GST) will complete one year in operation on June 30 and the first anniversary will be celebrated on July 1.
The government did call it Good and Simple Tax, but GST had its fair share of challenges that came up in the implementation stage.
Here are some reasons why GST failed to realise expected benefits: (Image source: PTI)
1. Complex procedure: Initially businesspersons were told to file monthly returns. GST Forms were complicated too. (Image source: PTI)
The govt has simplified the procedure, but more is to be done. (Image source: PTI)
2. Lack of adequate anti-evasion measures: Govt delayed in implementing the anti-evasion measures. (Image source: PTI)
Reverse charge mechanism is yet to be rolled out, while e-way bill was launched only recently. (Image source: PTI)
3. Attitudinal problem: Businessmen in India have this attitude to put off paying taxes to a later date and at the last moment suffer multiple fiascoes. Tax evasion itself is a massive problem. (Image source: PTI)
This attitude needs to be changed for robust GST collections. (Image source: PTI)