India celebrates July 1, 2021 as the GST Day to mark the fourth anniversary of the roll-out of the historic indirect tax regime in the country. The fourth year of GST is a bit special. Over 54,000 GST payers will receive certificates of appreciation from the Union Ministry of Finance for timely filing of returns and a cash payment of the tax. Besides, the Central Board of Indirect Tax and Customs (CBIC) will award a Commendation Certificate to its officers.
History and significance
The Goods and Services Tax (GST) journey began in 2000, when a commission was established in India to draft a law to replace all multiple liquid taxes. It took 17 years for the GST law to pass both parliaments.
GST was launched at a spectacular ceremony held at the Central Parliament Hall on the nights of June 30th and July 1st, 2017. GST is India’s multi-step, indirect consumption-based tax system, which is levied on a variety of goods and services. It was introduced to include many domestic indirect taxes such as VAT, service tax, purchase tax and excise tax in one head. Oil, liquor and stamp duty are exempt from GST.
According to the Ministry of Finance, after the Goods and Services Tax system was completed for four years, more than 6.6 billion rupees of GST tax returns have been filed so far, and the tax rate has been reduced to improve compliance. Despite the national blockade caused by the coronavirus, GST revenue collection in India exceeded rupees. The mark of 10,000 rupees of the 8th moth in a row as much as Rs. According to the ministry, 102 and 702 were collected in May alone.