This tech-driven tax regime, where government and businesses have embraced automation, has demonstrably delivered. It has brought us closer to the dream of "one nation, one tax," boosting supply chains and creating a springboard for specific sectors to thrive. However, as we celebrate this milestone, it's crucial to take stock. A closer look at the actual impact of GST will help us identify areas where it can flourish further.
India's digital leap:The success of GST as a reform hinged on a robust compliance infrastructure. Enter the GST Network (GSTN), a game-changer that streamlined registration, tax payments, and return filing for taxpayers. Even sceptics acknowledge its success. GSTN has not only simplified compliance for businesses and the tax department, but also empowered them with sharper data analytics to identify and combat tax evasion.
The automation of processes like e-waybills, e-invoicing, and monthly returns has, in many ways, revolutionised tax compliance, and this successful digitisation model is now inspiring other countries to follow suit.
The biggest winners of this simplified system might be the micro, small and medium enterprises (MSMEs). GSTN's initiatives like quarterly returns and relaxed GSTR-9C requirements have incentivised MSMEs to register under GST, significantly boosting the taxpayer base. This growth translates to benefits for MSMEs, as large businesses increasingly prefer to work with GST-registered and compliant entities, thereby fuelling the expansion of MSMEs. Additionally, GST has helped in unlocking better credit facilities for MSMEs, further propelling their growth.
This story is from the June 20, 2024 edition of Business Standard.
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This story is from the June 20, 2024 edition of Business Standard.
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