GST implementation brings small traders-business into formal tax net, boost inter-state trade: Economic Survey

New Delhi, August 11 (KNN) The Economic Survey tabled in Lok Sabha highlighted several aspects of the economy, especially with regard to the newly introduced Goods and Services Tax (GST). According to the survey authored by Chief Economic Advisor, Arvind Subramanian, GST is an instrumental reform for the Indian economy. With GST in place, the small businesses and traders that perform transaction on tiny and micro levels have been covered under the new tax regime.

The Study further said that under GST, common set of Data for both State as well as Centre regarding  small scale manufactures will make tax collection easier and effective, and is likely to boost inter-state trade.

The implementation of GST is already beginning to show early signs of tax expansion, the report added.

The Survey observed that sectors including education, healthcare, real estate, electricity and alcohol needs to be brought under the ambit of the One Nation One tax.

Almost 71 lakh excise, service tax and VAT payers, have migrated to the GST regime. Also there are over 15 lakh entities who registered fresh under the new indirect tax regime, the Economic Survey informed.

Subramanian proposed a higher tax rate on gold and jewellery products arguing that these products are niche consumption of people belonging to the upper strata, and therefore can be taxed at a higher rate. (KNN/ DA)