New Delhi: Union Finance Minister Nirmala Sitharaman on Wednesday said that the Goods and Services Tax (GST) has reduced the rate at which people have to pay tax and the GST rate at present is only 11.6 per cent. In a tweet, the Finanace Minister said "GST has reduced the rate at which people have to pay tax. The revenue neutral rate as recommended by the RNR Committee was 15.3 per cent. Compared to this, the weighted GST rate at present, according to the Reserve Bank of India (RBI), is only 11.6 per cent. #4yearsofGST." It is now widely acknowledged that GST is both consumer and taxpayer-friendly. While high tax rates of the pre-GST era acted as a disincentive to paying tax, the lower rates under GST helped to increase tax compliance. More than 66 crore GST returns have been filed so far.(1/3) — Ministry of Finance (@FinMinIndia) June 30, 2021 With effect from FY 2019-20, the Composition Scheme was extended to suppliers of services (up to Rs. 50 lakh turnover). Further, the composition taxpayers were allowed to furnish returns on an annual basis as against quarterly as was the case earlier. #4yearsofGST (2/2) — Ministry of Finance (@FinMinIndia) June 30, 2021 For services, Businesses with turnover upto Rs 20 lakh in a year are GST exempt. A service provider having turnover upto Rs 50 lakh in a year can opt for composition scheme for services and pay only 6% tax. #4yearsofGST (3/3) — Ministry of Finance (@FinMinIndia) June 30, 2021 Ministry of Finance said that GST has replaced the complex indirect tax structure with a simple, transparent and technology-driven tax regime and has thus integrated India into a single common market. "GST completes four years since implementation today. GST has replaced the complex indirect tax structure with a simple, transparent and technology-driven tax regime and has thus integrated India into a single common market," tweeted Ministry of Finance. It further said India has been able to achieve economic integration of the country with a humane touch. "#4yearsofGST With the continuous simplification of procedures and rationalisation of rate structures so as to make GST compliance easy for common man as well as the trade, we have been able to achieve economic integration of the country with a humane touch," the ministry added.
