7 Years of GST: Revolutionizing Household Spending

The Goods and Services Tax (GST) marks its 7th anniversary, significantly reducing tax rates on household appliances and mobile phones. This has increased ease of living and taxpayer compliance. The tax base has expanded from 1.05 crore in 2018 to 1.46 crore in 2024, highlighting its widespread acceptance.

The Goods and Services Tax (GST), marking seven years of implementation, has brought substantial relief to households by reducing taxes on appliances and mobile phones, according to the finance ministry.

First implemented on July 1, 2017, GST amalgamated around 17 local taxes and cesses. Under the theme of 'Sashakt Vyapar Samagra Vikas' (empowered trade, overall growth), this tax regime has lowered rates on household goods, enhancing living standards and easing financial burdens.

The GST taxpayer base expanded from 1.05 crore in April 2018 to 1.46 crore by April 2024, according to the Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal. The ministry noted a significant drop in the rates of essential items like unpacked wheat, rice, curd, and lassi, which are now tax-free compared to pre-GST rates of 2.5-4 per cent.

Additionally, household goods such as cosmetics, wristwatches, and sanitary items are now taxed at 18 per cent, down from 28 per cent in the previous regimes. The GST regime also offers relief on mobile phones, TVs under 32 inches, refrigerators, and other electrical appliances, now taxed at 18 per cent as opposed to 31.3 per cent before GST.

The compliance burden for small taxpayers has been reduced, with the GST Council recommending the waiver of annual return filing for those with an annual turnover of up to Rs 2 crore. The QRMP scheme has simplified tax filing, reducing the number of returns filed annually from 24 to 8 for over 44 lakh small taxpayers. The Invoice Furnishing Facility (IFF) also ensures seamless ITC passage.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)