One year Journey of GST


One year Journey of GST

Whenever we heard the speech of our Prime Minister “Modiji” on GST, he started his speech by saying that GST means “GOOD & SIMPLE TAX”.

One year ago, Government took historical move by implementing “GST” Act. There were many changes done by the Government in the journey of GST. It is the biggest move taken by the Government & subsumed many acts prevailing in the system like VAT, SERVICE TAX, EXCISE Acts etc. As compare to previous acts, GST is said to be the most simplified law.

One year Journey of GST
One year Journey of GST

In the starting phase, GST is like a new born baby, having many teething issues. But after that Government managed issue arising from GST very well by providing solution on it by way of Simplified GST Returns, Deferred RCM payment, reducing Penalties etc. But now it’s time to celebrate GST’S 1st Birthday on 01.07.2019

 Every coin has two sides; such quote is applicable to GST act also. Even thought there are some issues regarding GST system but it has some positive effect also.

In this article I mainly focused on GST benefit and its overall journey of One year.

So, let us have a look at various benefits it has provided to the Dealers:

  1. Registration procedure:

Before GST, taxpayer is required to register in different laws according to limit defined in the act. But in GST tax regime, taxpayer will get only one number i.e. GST no. within a week only by uploading 3-4 documents online, without visiting the office physically.

  1. Various Definitions:

Before GST act, there is various definitions in each laws, like in excise goods definition is different than VAT act, and the taxpayers required to remember each definition. But in the GST regime, Simple definitions are there. Also Government made clear distinguish of goods or services, and under category it is fall either goods or services. Government also issued various definitions in very simplified manner.

E.g. in pre GST regime, there was issue under category work contracts should be classified either in goods category or in services. But now in GST regime, works contract is classified in service category and solve the issue.

  1. Provisions/ Rules:

In the GST regime, Government issued various circular and notifications in very simplified manner. If there is any complexity or more interpretation is possible then Government also issued “FAQ’s” and solves the problem.

  1. Return filling procedures:

In the initial stage of filling returns, some problems were arising like site was not supported  due infrastructure failures but now a days, Government made the filling very simple and also put some auto populate option in GSTR-3B. Government also reduced the penalty from 200/- per day to 50/- per day.

  1. Penal provision :

In GST Act, there are more harsh and stringent Penalties. It is not very easy to break the provisions of laws.

  1. Input Tax Credit:

In the earlier laws, taxpayer is unable to take credit of Central sales tax (CST) which leads to increase the cost of purchase. Small taxpayers, who are covered under the Excise act, are unable to take credit of excise. But now in GST, there is no such barrier, taxpayer can take the credit of any expense and tax (except on the things specified in negative list.)

  1. Uniformity in Rates:

In the pre GST Era, there are various rates in different states especially in VAT act, and therefore chances of tax evasion was very high. But in GST act, rates are uniform in all over the country hence there are very minimal chances for tax evasion.

  1. Grievance Mechanism:

It is a very good initiative taken by Government by introducing Grievance system in the GST act.  There is toll free numbers available on the portal and mails also from which taxpayer can solved his problem easily.

Government also issued various fillers FAQ’s on the “GST Twitter”, which solve the doubt of other taxpayers also. We can twit on the “@askGST_Gol” which is official twitter of the Government. Government issued various notifications on this twit.

I know till date taxpayer faced some issues or not happy with this law. But if everyone sees from long term perspective we find positive results.

If we take GST positively and accept the changes done by Government, then we realize that there are more benefits or positive impact on the economy.

We must give some time and utmost support to Government, so that GST should actually become “GOOD & SIMPLE” Tax, which is vision of our Prime Minister.


-CA Monika Rathi

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