 "5 years of GST: How far has it lived up to promise of simple tax regime")
Well begun, not quite done: Five years to the day since the Goods and Services Tax (GST) was launched, how far has it lived up to its promise of ushering in a good and simple indirect tax regime?
Here’s a look at the journey so far:
2006
FEBRUARY: Then Finance Minister P Chidambaram proposes April 2010 as the target date for GST rollout.
2014
DECEMBER: After years of delays and extensive discussions, the then FM Arun Jaitley tables Constitutional Amendment to GST Bill in Lok Sabha.
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2017
JULY: GST rolled out.
NOVEMBER: 23rd GST Council meeting. Relief for MSMEs provided, tax filings made quarterly. First major rate changes for a number of items. Next few meetings would see a number of filing and rate changes.
2018
JULY: 28th GST Council Meeting. Creation of GST Appellate Tribunal approved
DECEMBER: 31st GST Council Meeting. Massive rate rationalisation across categories ahead of the 2019 Lok Sabha elections
2019
JUNE: 35th Council meeting. Aadhaar-enabled GST registration introduced. Decision on e-invoicing
2020
JUNE: 40th Council meeting. The first meeting held after the Covid-19 outbreak. Many waivers given in filing GST returns
AUGUST: 41st Council meeting.
One agenda item: Methods of compensating states in view of compensation cess shortfall due to Covid-19 pandemic. States were given two borrowing options. However, Centre later decided to borrow Rs 1.1 trillion and give states for FY21
2021
MAY: 43rd Council meeting. In light of continued compensation shortfall, it was decided that Centre would borrow Rs 1.58 trillion on behalf of states. GST exemptions were given on many key medical products
SEPTEMBER: 45th meeting. There was further rationalisation of inverted duty structure. It was decided that GST compensation will be collected till March 2026 to pay back interest and principal of earlier borrowed amounts.
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