Six years after its introduction, India’s indirect tax system has undergone substantial changes because of the Goods and Services Tax (GST).
In this podcast, businessline’s Shishir Sinha talks to Darshan Bora, Partner, Economic Laws Practice and M S Mani, Senior Partner, Deloitte about various aspects of GST in India.
Initially, businesses faced challenges, but the landscape of indirect taxes has significantly improved. The GST has eliminated multiple taxes and brought uniformity in tax rates across states, making it easier for businesses and consumers. A survey conducted by Deloitte also showed that 75% of industry professionals were satisfied with GST compared to the past.
While GST has been successful, there are still areas that can be improved. One area is the complexity of the legal structure, which includes multiple laws and subordinate legislations. Simplifying the legal framework would contribute to making GST a simpler taxation system.
The conversation also focuses on GST collections. The collection numbers have been increasing, and various factors have influenced these numbers. The economy’s performance and actions by GST authorities to curb tax evasion are significant variables affecting collections.
Regarding the functioning of the Authority for Advance Rulings (AAR), the guests suggest incorporating judicial members to provide a balance in rulings.
Lastly, the conversation touches upon rate rationalization and the possibility of reducing the number of tax rates. Listen in.