GST @ 5

With the introduction of the GST law under the “One Nation, One Tax” regime for the first time in the country in July 2017, the Indian indirect tax regime underwent a revolution. Despite a few hiccups that India experienced while adopting the new tax structure, GST is widely regarded as one of the most important reforms that the country has implemented in the last couple of years. During this time, India witnessed changes in the effective tax rates and improved supply-chain efficiencies. A tax regime founded on a technology-based monitoring system, such as e-returns, e-invoices, and e-way bills, has been one of the biggest achievements of GST in India. 

While GST has helped achieve significant changes and objectives in a unified indirect tax regime, in these last five years since GST implementation and increasing audits/investigations, the journey towards a “good and simple tax” will only continue. There is a need to balance revenue augmentation measures and ensure ease of doing business for taxpayers. A change in mindset coupled with a hard look at reforms will go a long way to provide further thrust to India’s economy as we continue on the road to recovery post-pandemic.