One year of GST: One tax for petrol, diesel, and much more left to be desired
As the Goods and Services Tax at the brink of completing its first year in operations, here's a look at what the taxpayers expect the unified indirect tax regime to achieve.
- Jun 29, 2018,
- Updated Jun 29, 2018 10:08 PM IST
The Modi government rolled out the Goods and Services Tax (GST) with much fanfare on July 1, 2017. We have come a long way since then. There is the e-way bill to ease transportation of goods, the tax net has grown, and more - courtesy GST. Quite recently, the Indian economy has finally shaken off the shocks that accompanied the biggest tax reform seen by India. So is it smooth sailing from here on?
It seems not. A lot more has been expected from GST - ranging from easier tax return filing process and even lesser tax slabs for ease in compliance, and even taking a call on bringing petroleum products under the ambit of the unified tax regime. The demand to fix a uniform tax structure for petrol and diesel was strongly raised recently after fuel prices skyrocketed to new heights. Goes on to show how much taxpayers are depending on GST to help them out with managing their bills, as was promised.
As GST nears its first anniversary, here's a look at all that remains on the to-do list of GST Council in days to come:
Petrol, diesel prices under GST
Despite repeated demands to bring petrol and diesel under the GST regime, the GST Council has not taken a call on the matter. The request was raised prominently a few weeks back once again after petrol breached the Rs 84-mark, an all-time high for the primary transportation fuel.
As reports suggest, the GST Council might consider including natural gas and aviation turbine fuel (ATF) in GST in its next meeting. Recently, Finance Secretary Hasmukh Adhia said that these two petroleum products are easier to bring under the GST regime.
Simplifying GST return filing
Compliance remains a thorn in the side of GST despite a year since its rollout. And the complicated return filing process under GST remains one of the major reasons behind this. While the GST Council has made a few tweaks to help, they have failed to meet the expectations of taxpayers who have been asking for a simpler GST filing mechanism since its rollout.
Delays in filing tax returns often hold up the tax refunds to taxpayers, which is causing troubles for them, especially businesses.
Fewer tax slabs
India is one of the handful countries that have four tax slabs under GST - including Pakistan, Luxembourg, Ghana and Italy. While the possibility of a single tax slab has been plainly turned down by the government, there remains a possibility that we might get fewer tax slabs. As of now, GST is charged at 28 per cent, 18 per cent, 12 per cent, and 5 per cent. Several items have been placed under the zero per cent tax slab, whereas gold attracts GST at 3 per cent. There are chances that there could be only two tax slabs in future.
Bringing real estate under GST
Real estate, like petroleum products, is exempt from GST. There were speculations that the GST Council might take a decision on bringing real estate under the GST regime, there is no word on such a decision yet.
The Modi government rolled out the Goods and Services Tax (GST) with much fanfare on July 1, 2017. We have come a long way since then. There is the e-way bill to ease transportation of goods, the tax net has grown, and more - courtesy GST. Quite recently, the Indian economy has finally shaken off the shocks that accompanied the biggest tax reform seen by India. So is it smooth sailing from here on?
It seems not. A lot more has been expected from GST - ranging from easier tax return filing process and even lesser tax slabs for ease in compliance, and even taking a call on bringing petroleum products under the ambit of the unified tax regime. The demand to fix a uniform tax structure for petrol and diesel was strongly raised recently after fuel prices skyrocketed to new heights. Goes on to show how much taxpayers are depending on GST to help them out with managing their bills, as was promised.
As GST nears its first anniversary, here's a look at all that remains on the to-do list of GST Council in days to come:
Petrol, diesel prices under GST
Despite repeated demands to bring petrol and diesel under the GST regime, the GST Council has not taken a call on the matter. The request was raised prominently a few weeks back once again after petrol breached the Rs 84-mark, an all-time high for the primary transportation fuel.
As reports suggest, the GST Council might consider including natural gas and aviation turbine fuel (ATF) in GST in its next meeting. Recently, Finance Secretary Hasmukh Adhia said that these two petroleum products are easier to bring under the GST regime.
Simplifying GST return filing
Compliance remains a thorn in the side of GST despite a year since its rollout. And the complicated return filing process under GST remains one of the major reasons behind this. While the GST Council has made a few tweaks to help, they have failed to meet the expectations of taxpayers who have been asking for a simpler GST filing mechanism since its rollout.
Delays in filing tax returns often hold up the tax refunds to taxpayers, which is causing troubles for them, especially businesses.
Fewer tax slabs
India is one of the handful countries that have four tax slabs under GST - including Pakistan, Luxembourg, Ghana and Italy. While the possibility of a single tax slab has been plainly turned down by the government, there remains a possibility that we might get fewer tax slabs. As of now, GST is charged at 28 per cent, 18 per cent, 12 per cent, and 5 per cent. Several items have been placed under the zero per cent tax slab, whereas gold attracts GST at 3 per cent. There are chances that there could be only two tax slabs in future.
Bringing real estate under GST
Real estate, like petroleum products, is exempt from GST. There were speculations that the GST Council might take a decision on bringing real estate under the GST regime, there is no word on such a decision yet.