Union Government Highlights GST Benefits: Reduced Tax Burden & Compliance Costs, Expanded Coverage in Budget 2024-25

The Union government has highlighted the positive impacts of the Goods and Services Tax (GST) on reducing the tax burden for the common man, lowering compliance costs, and decreasing logistics expenses for businesses. Additionally, GST has boosted revenues for both Central and state governments.

In the Union Budget for 2024-25, it was announced that GST would be extended to additional sectors. Finance Minister Nirmala Sitharaman described GST as a “success of vast proportions” and emphasized the government’s commitment to simplifying and rationalizing the tax structure, aiming to expand GST coverage.

All major taxpayer services under GST, as well as many services under Customs and Income Tax, have been digitized, enhancing efficiency. In June 2024, India’s gross GST collection rose to Rs 1.74 lakh crore, reflecting a 7.7% increase compared to the previous year. This brings the total GST collection for the first quarter of the fiscal year to Rs 5.57 lakh crore, with a record high of Rs 1.87 lakh crore collected in April 2023.

Experts attribute economic growth to the GST reforms, which have simplified compliance and reduced tax burdens. The proposed tax structure rationalization, along with new tax regime changes like increased standard deductions, is expected to benefit the salaried class and boost disposable income, positively influencing housing demand.

The GST system, now seven years in place, has provided relief by reducing taxes on household items like appliances and mobile phones. The number of GST taxpayers increased from 1.05 crore in April 2018 to 1.46 crore in April 2024. The GST Council has also recommended waiving the annual return filing requirement for taxpayers with an annual turnover of up to Rs 2 crore for the fiscal year 2023-24.