- Tax, Legal & Accounting
- 2 min read
Implementation of GST has helped poor: Sitharaman
Finance Minister Nirmala Sitharaman highlighted the significant impact of GST on the economy, praising its role in benefiting the poor by lowering taxes on essential items and improving tax buoyancy across states.Finance Minister Nirmala Sitharaman Monday said as the heightened economic activity has pushed the Goods and Services tax Collections to a new high of above ₹2 lakh crore in March, and implementation of GST has helped poor as it lowered taxes on large items and exempted many essential goods and services from tax, compared to the pre-GST era.
In a post on social media portal X, she said that GST exemplifies cooperative federalism in India, empowering states with significant improvement in their tax buoyancy which reached to 1.15 from 0.72 in pre-GST era.
"GST collections crossed a landmark of ₹2 lakh crore - thanks to heightened economic activity," Sitharaman said.
Her tweet came days after Bajaj Auto Chairman Rajiv Bajaj attributed the rise in prices of two-wheelers to 'overregulation' of the market and high GST on two-wheelers. She also busted the notion that the increase in revenue was pocketed by the centre and added that the GST has improved tax buoyancy of states to 1.22 (for 2018-23), a significant improvement from 0.72 in pre-GST era. "Despite compensation ending, state revenues remain buoyant at 1.15," Sitharaman said. She said the GST Council, with a 75% majority vote requirement, assigns one-third voting power to the Centre & two-thirds to states, exemplifying cooperative federalism.
COMMENTS
All Comments
By commenting, you agree to the Prohibited Content Policy
PostBy commenting, you agree to the Prohibited Content Policy
PostFind this Comment Offensive?
Choose your reason below and click on the submit button. This will alert our moderators to take actions