The goods and services tax (GST), a single indirect tax regime which was introduced in 2017, is still going through the transformative stage. The government has brought many changes in the GST structure to make it more convenient for taxpayers, said a Finance Ministry statement, adding that the availability of data helps make tax collections more effective. Here are the details:

1.  Introduction of the GST has resulted in formalisation of the economy.
2. The information flow would eventually augment not only the indirect tax collections but also direct tax collections.
3. The Centre had earlier little data on small manufacturers and consumption as the excise was imposed only at the manufacturing stage. The states had little data on the activities of local firms outside their borders.
4. There are early signs of tax base expansion, as between June and July 2017, 6.6 lakh new agents sought GST registration. The government said the tax base is likely to rise as the incentives for formalisation increase.
5. The entire textile chain is now brought under tax net and land and real estate transactions have also been brought into the tax net to facilitate the taxpayers and to extend the benefit to the customers, the statement added.

Also Read: GST leads to formalisation of an economy, widening of tax base, says govt

Source: Zee Business