Union Finance Minister Nirmala Sitharaman during her Budget speech said that average household spends 4 per cent less due to reduced GST rates.
Presenting her second Budget, Sitharaman said that Goods and Services Tax (GST) has led to formalisation of the economy and it has helped in vanishing the dreaded 'inspector raj' of the past. It has resulted in efficiency gains in the transport and logistics sectors.
Terming her predecessor, Arun Jaitley, as the 'architect of GST', Sitharaman said that GST is an historic structural reform and has resulted in Rs 1 lakh crore gains to consumers and helped transport and logistics sectors.
GST was introduced by late finance Minister Arun Jaitley, which came into effect from July 1, 2017.
Sitharaman also announced that a simplified return for GST will be introduced from April 2020.
Earlier on Friday, the Economic Survey 2020 has said that the introduction of GST, digitisation of payments and social security schemes, have led to the creation of jobs in formal sector. It also claimed that post introduction of GST regime, there has been an increase in the number of indirect taxpayers, besides a large increase in voluntary registrations.
Her reference to GST comes amid reports that GST collections crossed Rs 1 lakh crore for the third month in a row in January. Domestic GST collection during the month so far is around Rs 86,453 crore while Rs 23,597 crore has been collected through IGST and cess collection. The total collection of GST revenue in December was Rs 1.03 lakh crore.
By Chitranjan Kumar