Friday, June 14, 2024
Advertisement
  1. You Are At:
  2. News
  3. Business
  4. GST helped increase revenue buoyancy of states as all-round benefit stands out 'exemplary': FM

GST helped increase revenue buoyancy of states as all-round benefit stands out 'exemplary': FM

The multiplicity of taxes in the pre-GST regime resulted in a "tax-on-tax" effect, causing the same product to be taxed multiple times and hence becoming costlier for the consumers, Finance Minister Nirmala Sitharaman said at the GST Day 2023.

Edited By: India TV Business Desk New Delhi Published on: July 01, 2023 20:36 IST
Nirmala Sitharaman on GST
Image Source : PTI Union Finance Minister Nirmala Sitharaman

Goods and Services Tax: Union Finance Minister Nirmala Sitharaman on Saturday said Goods and Services Tax (GST) has strengthened the revenue buoyancy of states, and the all-around benefit stands out as "exemplary".

The multiplicity of taxes in the pre-GST regime resulted in a "tax-on-tax" effect, causing the same product to be taxed multiple times and hence becoming costlier for the consumers, she said at the GST Day 2023.

Giving a comparison of the tax rates pre and post-GST, Sitharaman said, "GST has done justice to the consumers by bringing the rates down compared to the previous regime".

ALSO READ: CAIT calls for fresh review of GST on its 6th anniversary

'India's indirect tax system was fragmented before GST'

Before GST was introduced, India's indirect tax system was fragmented, where every state was effectively a distinct market for the industry as well as the consumer.

"Whether it is common consumer, whether it is the state government, a matter of tax buoyancy, whether it is making it digital and simpler, GST stands out as an exemplar," Sitharaman said.

State revenue buoyancy pre-GST was 0.72, while post-GST, it is 1.22. "GST has brought in greater buoyancy. Therefore, both Centre and state benefit. Today, no state's (revenue) suffers post GST," Sitharaman added. 

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business

Advertisement
Advertisement
Advertisement
Advertisement