The implementation of the Goods and Services Tax (GST) regime has proven to be a resounding success in India. Even six years after its introduction, the consistent monthly revenue of Rs 1.5 lakh crore reflects the establishment of a new norm. Despite initial concerns about the execution of the GST regime, the tax base has more than doubled since 2017. This unified tax system, fostering cooperative federalism, has effectively consolidated multiple taxes and cesses into a single system, promoting the formalization of the informal economy.
In addition to revenue generation, the focus has rightly shifted towards combating tax evasion. The government is now directing its efforts towards tackling fraudsters who continually devise new schemes to manipulate the system. The objective is to minimize fake registrations and invoices while improving risk management. In the fiscal year 2022-23, GST evasion amounting to approximately Rs 1.01 lakh crore was detected, and since July 2017 until February 2023, a total of Rs 3.08 lakh crore had been identified, with Rs 1.03 lakh crore already recovered.
The upcoming 50th session of the GST Council, scheduled for July 11, presents an opportunity to reflect on the progress made thus far. It is also an occasion to address unresolved core issues, including the long-delayed establishment of the GST Tribunal. The tax structure for casinos and online gaming remains unresolved as well. Having overcome initial challenges and uncertainties, the logical next step is to strengthen the GST system. The industry advocates for a comprehensive review to reduce disputes and further simplify laws. The reassurance and reaffirmation of a fair partnership between the Centre and the states are crucial in this process.
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