Union Finance Minister Nirmala Sitharaman published a three-part post on social media containing the data. (Image source: News18/Archives)
Union Finance Minister Nirmala Sitharaman said this showed an improvement in economic activity and suggested that most opposition-ruled states had more disposable income, contrary to their claims
Amid the ongoing Lok Sabha elections, as the debate between the opposition-ruled state and the center intensifies, the collection of goods and services tax has increased significantly and has crossed the Rs 200-crore mark. This not only shows improved economic activity but also suggests that most opposition-ruled countries have more disposable income, contrary to their claims.
Union Finance Minister Nirmala Sitharaman published a long post on social media explaining with data: “The larger GST architecture has achieved two important milestones. The Chairman of the Goods and Services Tax Appellate Tribunal (GSTAT) has Appointed, total GST collection crosses Rs 200-crore milestone due to strengthening economic activities This article is divided into three parts. The first part explores the origins of GST and its role in streamlining the indirect tax system. .The second part discusses how the GST benefits people through poverty alleviation. The third part highlights the role of the GST in promoting cooperation and fiscal federalism…”
The opposition, particularly the Congress party and its senior leader Rahul Gandhi, has been attacking the government, calling the GST the “Babar tax” and pledging to scrap it if the party comes to power. However, data shows that the tax helps states more than the Centre. Sources said that with this data, which also shows that states have benefited from it, the Center can now refute the allegations of state governments such as West Bengal, Telangana and Karnataka that funds have been deprived.
Part-3: – Goods and Services Tax embodies the cooperative federalism of India, empowering the states.this @GST_Council, which requires a 75% majority, allocates one-third of the voting power to the Center and two-thirds to the states. In all but one of the 52 meetings, decisions were reached by consensus. as… pic.twitter.com/1YR96jWCmr— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 6, 2024
In the third part of her post, Sitharaman said it was a myth that all the GST revenue was pocketed by the Centre. “Cooperative federalism in India, empowering states. @GST_Council requires 75% majority, allocating one-third of the voting power to the Center and two-thirds of the voting power to the states. All levied goods & It is a myth that all service taxes are pocketed by the Centre. Goods and Services Tax (GST) contributes significantly to state revenue – states get 100% of the SGST collected by the state and about 50% of the IGST. % (i.e. inter-state trade). As per the Finance Commission’s recommendations, a large portion (i.e. 42%) of CGST is devolved to states from FY18-19 to FY2023-24. The revenue received from the consolidated tax will be Rs. 3,750 crore. With the addition of GST, the actual revenue to the states comes to Rs. 4,656 crore…” she wrote.
The minister further said that the GST reflects the Modi-led government’s commitment to “Sabka saath, sabka vikas, sabka vishwas, sabka Prayaas”. She added that through the GST Council, the Center and state governments should work together to make the system more taxpayer-friendly to realize the Prime Minister’s vision of ‘Viksit Bharat’.
She said in the first part of the post: “Before GST, India’s indirect tax system was fragmented and each state was effectively a different market in itself with different rules and rates. Inputs such as central excise duty Unable to utilize, resulting in an increase in the tax burden on the common people. GST streamlines 17 types of taxes and 13 tax items into a five-level structure, simplifying the tax system…”
She said the GST has also reduced the 495 different submissions (such as challans, forms, declarations, etc.) by states to just 12. system that simplifies compliance.
Check out the 2024 Lok Sabha election third phase schedule, main candidates and constituencies: news18 website.
