The Goods and Services Tax (GST) is an integral taxation mechanism of the Indian economy. In an effort to ensure its effectiveness and continued compliance, it is important to revise the GST budget for 2023-24. This article reviews the proposed changes to the GST of this budget, examining their implications on the effectiveness of the taxation system via reduction of slabs, removal of concessional rates and increased input tax credits, and streamlining of the filing system. Thus, these improvements to the GST budget of 2023-24 promise to make the tax system simpler and more efficient while maximising the government’s potential revenue.
The Goods and Services Tax (GST), launched in 2017, is an important tax policy of the Indian economy. The budget for the year 2023-24 must make changes to ensure that GST remains effective.
The first change proposed by experts is to reduce the number of tax slabs in the GST system. Currently, there are five tax slabs covering a range of 0% to 28%. This complicates the tax structure and lowers compliance. Experts suggest that the number of GST tax slabs be reduced to two or three to simplify the system and target specific goods and services that should be taxed at a higher rate.
The second proposed change is to eliminate the concessional rate of 5% for certain goods and services. This rate has led to a decrease in government revenue and should be removed in order to ensure fairness in taxation.
The government should also consider increasing the number of input tax credits available. Currently, taxpayers have a limited number of input tax credits due to the high number of tax loopholes. By raising this number, taxpayers can receive more tax savings and the government will be able to increase its revenue.
Finally, the mechanism for filing GST returns should be revised. The current system has too many procedures and is complex for taxpayers. To make it easier and simpler to follow, the government should think about providing automated assistance or creating an online filing system for taxpayers.
These proposed changes will make the process of filing GST returns simpler and more efficient. Furthermore, taxpayers will face less burden in complying with the tax system and the government can expect a higher level of compliance from taxpayers. Ultimately, these proposed changes to the GST budget of 2023-24 will help ensure that the GST is more effective and successful in the long run.
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