Goods and Services Tax 2.0 | Transforming India’s Tax Landscape
The Government has initiated several key reforms during the last decade, but nothing could be viewed as more transformational than recent changes to Goods and Services Tax policy. Goods and Services Tax in India has always been the focal point in the economic and policy circle discussions since its introduction in 2017.
The revenue potential of Goods and Services Tax was in doubt, as it was generally viewed as a complex tax due to the perceived difficulties involved in implementation. This is for more of the micro, small, and medium-sized businesses that lacked the required skills and competence for the new tax regime. The multiplicity of rates and slabs provides further fuel to critics of the Goods and Services Tax. The Goods and Services Tax has travelled a long distance over the years, and it has emerged as the most important revenue source for the Government.
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The new tax system has many changes to keep pace with the fast-changing economic realities in India and the Global economy. The latest reform of Goods and Services Tax, taken by the Central Government, can have far-reaching economic consequences.
The first look at the recent changes in Goods and Service Tax billed as 2.0 it introduce the changes like the rates and slabs besides the reducing the tax burden instead of multi-ties rates at 5 %, 12 %, 18 % and 28 % the new tax structure under the Goods and Services Tax has only two standard tax on essential commodities the rate of GST in 5 %, and other goods and services rate is 18 %.
In luxury goods 40 % tax it was introduced in the first time, the Goods and Service Tax rate is 5 % has covered the daily needs and agricultural goods and health care equipment the electronic products, small cars and motor cycles with less than 350 CC the GST rate is 18 %. And services like life insurance and individual health insurance do not have to pay any GST under the revised policy.
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