China’s economy is currently encountering various challenges. One of the significant developments in India is the implementation of the Goods and Services Tax (GST). According to Finance Minister Nirmala Sitharaman, the GST has played a crucial role in improving the revenue buoyancy of states.
In the pre-GST era, the revenue buoyancy stood at 0.72, whereas it has risen to 1.22 after the GST rollout. This indicates that states’ tax revenues are now growing faster than the GDP.
Sitharaman further emphasized that the GST has successfully eliminated the cascading effect of “tax-on-tax,” resulting in reduced taxes for consumers. Previously, goods and services were taxed multiple times at different stages of the supply chain, but now they are taxed only once.
The article highlights the significant growth and expansion of the GST system since its implementation in 2017. Sitharaman praised the benefits that consumers and governments have gained from the GST, considering it as an exemplary tax implementation.
Overall, the article portrays the GST as a positive factor for the Indian economy. It has not only increased revenue for states but also reduced taxes for consumers while simplifying the tax system.
