Six years of GST

EVEN its harshest critic will agree that the Goods and Services Tax (GST) regime has been a success. Six years after the rollout of the biggest indirect tax reform in India, GST revenue of Rs 1.5 lakh crore every month seems to have become the new normal. Despite persistent doubts about the GST regime’s execution, the tax base has more than doubled from 2017. The initial hiccups notwithstanding, the one-nation, one-tax system has emerged as a shining example of cooperative federalism. Multiple taxes and cesses have been consolidated into a single system, catalysing the formalisation of the informal economy.

Along with revenue maximisation, the strategy has rightly shifted to curbing tax evasion. The Centre is now focusing its energies on dealing with fraudsters who are adopting newer modus operandi to game the system. The aim is to reduce fake registrations and invoices, as well as work towards better risk management. In the 2022-23 fiscal, GST evasion to the tune of around Rs 1.01 lakh crore had been detected. The figure for the period between July 2017 and February 2023 stood at Rs 3.08 lakh crore, of which Rs 1.03 lakh crore has been recovered.

The 50th session of the GST Council, scheduled for July 11, presents an occasion to look back with satisfaction at the distance covered. Also on the agenda would be the core issues that remain unresolved, such as setting up of the long overdue GST Tribunal. There is still no finality on the tax structure for casinos and online gaming. Having endured the transitional glitches and anxieties, strengthening the GST system is the logical step ahead. On the industry’s wishlist is a comprehensive review to reduce disputes and further simplify laws. For the Centre and the states, the reassurance and reiteration of an equitable engagement are critical.