GST exemption on 40 lakh turnover, many things become cheaper!
GST is considered to be the biggest reform in the country's indirect tax system, it is credited for successfully implementing the country's former Finance Minister Arun Jaitley, who also has his first death anniversary today. On this occasion, the current Finance Minister Nirmala Sitharaman made several tweets remembering her. After the arrival of GST, compliance has increased and taxpayer base has increased to 1.24 million. The Finance Ministry said that before GST, the total tax rate was 31%, including Value Added Tax (VAT), Excise, Sales Tax and all other types of taxes. It has now been proved that GST is beneficial for both the consumer and the taxpayer.
Businessmen got relief from GST
The Finance Ministry said that businesses with annual turnover of Rs 40 lakh have been exempted from GST, this limit was earlier Rs 20 lakh. Apart from this, now even those with 1.5 crore turnover will be able to take advantage of the composition scheme, and can do their business by paying only 1% tax. Whereas earlier this scheme was available to businessmen with annual turnover of Rs 75 lakh.
Tax deducted on all essential things
The Finance Ministry said that when the GST came into force, tax was reduced on a large number of products, at the moment the purview of 28 percent tax only includes luxury and loss-making items. There were 230 items earlier under the purview of 28 percent, out of which 200 things have been put in the lower tax slab. The housing sector has been placed in 5 percent slab, while affordable housing has been kept in 1 percent. GST processes have been fully automated. Apart from this, 50 crore returns have been filed online so far, and 131 crore e-way bills have been generated.
Everyday things become cheaper
The Finance Ministry said that the tax on the commonly used items like oil, toothpaste, soap, etc. has come down after the arrival of GST. Before GST, they were taxed at 29.3%, which has now come down to 18%. Not only this, before GST, cinema is taxed from 35% to 110%, now it is 12-18% GST.
According to the Finance Ministry, when the GST was started, there were only 65 lakh assessees, which has now increased to Rs 1.24 crore. The GST was implemented on 1 July 2017, in which around 17 taxes were merged and reduced to one.