The Special Secretary in the GST Council, Rajeev Ranjan attended a GST seminar which was organised by IIT Delhi Alumni Association. He mentioned about how the implementation of GST has impacted the number of forms involved in a return filing and how the several rounds of GST rate cuts resulted in lowered prices.
Rajeev Ranjan mentioned that after the implementation of GST, the number of forms a business needs to file has come down from 495 to 12. He also said that GST has brought down the logistics expenses for businesses. Furthermore, continuous rounds of GST rate cuts have not only resulted in lowered prices but also has helped to monitor inflation on a timely basis.
Ranjan mentioned that before GST implementation trucks used to cover around 225 km per day, and now it is between 300 km and 325 km. He also added that with GST rollout, the need for a fragmented market does not exist anymore.
Taxation under GST is non-intrusive in nature and thereby allows hassle-free movement of goods. With the implementation of GST in 2017, check posts at all state borders were dismantled so that one common market could be achieved.
Before the introduction of GST, around 14% of the overall cost of commodities in India accounted for logistics. However, post-implementation of GST the logistics cost has been 10% to 12% of the value of commodities.
Prakash Kumar, the Chief Executive Officer of GSTN, said that now the GST administration has started to share data with the IT department; this move has helped in identifying events of tax evasion. He also said that the move has also helped in capturing mismatches.
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Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.