The GST Appellate Tribunal and its Impact on India's Economy
On Monday, Union Finance Minister Nirmala Sitharaman administered the oath of office to Justice (Retd) Sanjaya Kumar Mishra as the first President of the GST Appellate Tribunal (GSTAT). This marked a significant milestone in the evolution of India's Goods and Services Tax (GST) regime.
Sitharaman emphasized the pro-poor stance of the GST, highlighting the consistent decrease in the effective weighted average GST rate since 2017. This has resulted in reduced taxes on several essential items, including hair oil, soaps, and electrical appliances, providing relief to the common populace.
The Finance Minister also traced the historical journey of GST, acknowledging its initial proposal under the Atal Behari Vajpayee-led NDA government and its eventual implementation under Prime Minister Narendra Modi's leadership. She underscored the GST's role in streamlining India's complex indirect tax system, bringing about significant simplification and efficiency.
Sitharaman highlighted the positive impact of GST on businesses, particularly MSMEs. The uniform processes, simplified registration, and minimal physical interface have led to substantial benefits, with 88% of MSMEs acknowledging the tax's role in reducing costs and optimizing supply chains.
Furthermore, the Finance Minister noted the remarkable increase in the number of registered taxpayers under GST and the utilization of schemes like the Quarterly Returns with Monthly Payment (QRMP) by small taxpayers and MSMEs. She pointed out that GST has facilitated MSME financing through various tools and frameworks, contributing to the sector's growth and resilience.
The recent milestone of GST collections exceeding Rs 2 lakh crore, propelled by heightened economic activity, marks a positive trajectory for the nation's fiscal landscape. The GST framework has demonstrably reduced the tax burden on essential items and streamlined tax compliance, leading to significant benefits for businesses and consumers alike.