GST DAY 2024:The Finance Ministry celebrated the seventh anniversary of the Goods and Services Tax (GST) on Monday, July 1,  highlighting its impact on reducing taxes for essential household items such as appliances and mobile phones.

Introduced on July 1, 2017, GST replaced approximately 17 local taxes and cesses. This year's GST Day theme, "Sashakt Vyapar Samagra Vikas" (Empowered Trade Overall Growth), underscores its role in transforming India's tax landscape.

The ministry praised GST for significantly lowering tax rates on household goods, bringing relief and joy to homes nationwide. "Since the implementation of GST, reduced tax rates on household goods have brought happiness and relief to every home," the ministry stated on social media.

The GST taxpayer base has grown substantially, reaching 1.46 crore in April 2024 from 1.05 crore in April 2018. Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal highlighted this expansion, noting improved compliance among taxpayers.

Comparative data released by the ministry illustrates how GST has made essential living more affordable. Food items like unpacked wheat, rice, curd, and lassi, previously taxed between 2.5-4 percent, are now exempt from GST. Similarly, household goods such as cosmetics, wristwatches, sanitary plastic ware, doors, windows, furniture, and mattresses now attract an 18 percent tax rate, down from the earlier 28 percent under excise and VAT regimes.

Electronics like mobile phones, smaller TVs, refrigerators, washing machines, geysers, and fans, previously taxed at 31.3 percent, now fall under the 18 percent tax slab, making them more accessible to consumers.

Furthermore, GST has eased compliance for small taxpayers. The GST Council has recommended exempting annual return filing for businesses with turnover up to Rs 2 crore in fiscal 2023-24. The Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme has streamlined tax filing for over 44 lakh small taxpayers, reducing annual returns from 24 to 8. The Invoice Furnishing Facility (IFF) has facilitated seamless Input Tax Credit (ITC) passage.

GST has simplified India's tax framework, promoting economic growth and compliance while benefiting households and businesses alike.

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