Sweet outcomes of GST implementationIn the pre GST regime in our country, there were many taxes like excise duty, sales tax, service tax etc but due to poor governance and lack of digital and online vigilance many people did not bother to file those taxes and continued selling the goods without any receipt or voucher.
At that time the practice of ignoring the tax laws was so rampant that like other stores, my neighbouring provision store also did the same thing by bringing the merchandise without tax and selling them without any tax invoicing.
Things changed drastically after the GST implementation, as the shops having high sales were afraid of the new system where catching them by authorities was an easier job so under compulsion as well as availing the input GST deduction they opted quickly for GST and took GST number and started invoicing the sales as well as depositing the GST in the Govt account.
This is a brilliant example of governance achieved through digital and online methods and Govt will be getting increasing GST revenues with time.
Many consumers are also benefitted by this. For example earlier the provision store was selling me an item for Rs 60 without any tax invoicing. Now also he is charging me Rs 60 but as GST on most of the common and daily use items is very low, he is depositing about Rs 2 only out of that as GST. So now he is practically getting only Rs 58 from me but keeping quiet about this. Earlier he was pocketing this Rs 2.
Now Govt is going to reduce GST on many items further down and only on luxury and sin items it will remain as 28%. So this will benefit the customer as well as increase the GST compliance.
Today when I read this news item that Govt is thinking to reduce GST further on some items, I thought let me share my views here so that we can get more comments and opinions on this.