Chennai, (UNI) Countering criticism of the GST regime, union Finance Minister Nirmala Sitharaman on Sunday said it had greatly benefitted the people as well as the |State Governments.
In the latest reforms of the GST regime, 99% of all goods which were in the 12% GST bracket have come under the 5% bracket, she said at the Joint Conclave of Trade and Industries on ‘Tax Reforms for Rising Bharat’.
“This is a reform which touches the lives of 140 crore people and the rate cut will reduce their expenses, resulting in savings,” she claimed and expressed confidence the benefits would be passed on to the consumers by the companies.
When the GST was introduced in 2017, there were 65 lakh taxpayers, but now there are 1.51 crore taxpayers, she pointed out.
The GST rates for over 350 items have been brought down and the system has been simplified, she noted.
“The gross GST receipts which were Rs 7.19 lakh crore then had crossed Rs 22 lakh crore with an average of 1.9 lakh or Rs 2 lakh crore per month, divided between the states and the union government on a 50:50 ratio,” she said adding, if the monthly collection is Rs 1.8 lakh crore, then Rs 90,000 crore is the union government’s share and 41% goes to the states.
“Now, we have brought all food items at 5% or 0% and as such there is no classification problem that existed earlier. Similar classification has been brought for one type of goods,” she said.
She also pointed out that the cut in personal income tax rates, the new Income Tax Act and the GST reforms have all been done in a span of eight months.
The GST refunds have also been simplified, Ms. Sitharaman said adding that it was done keeping in mind daily use items by the poor and middle classes.
The finance minister also indicated that the Insurance Amendment Bill, aimed at boosting FDI could be introduced in the winter session of Parliament.
People and State Governments were beneficiaries of GST regime: FM Nirmala Sitharaman
