This refers to the article, “One year of GST” by Sanju Verma (July 2). It was but expected that the Goods and Services Tax (GST), the single biggest tax reform in the history of India, last year, was bound to attract criticism and face more than a few teething problems. But it is to the credit of the GST Council that to this day, GST has been more than accommodating to market and industry demands.
At present, there are five tax slabs. Ideally, however, there should be a maximum of two or three slabs.
However, the need is to get petrol and diesel under the ambit of the new indirect tax regime. This, in its true sense, will transform the Indian economy as it will simplify the way petrol and diesel are priced. It will, hence, directly impact inflation and the economy in a positive way.
To recall, the idea behind GST was to not only formalise the economy, but also to make the tax net wider. This has been achieved to some extent. Many non-taxpayer companies have fallen under the tax net. With e-way Bill and invoice matching, it will be difficult for them to evade tax.
The Government as well as the GST Council must now focus on making the entire process of filing returns cumbersome for small traders and micro, small and medium enterprises. As the GST enters into the second year, we hope that the tax structure too is simplified.