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Implementation of GST has Helped Poor: Sitharaman

Finance Minister Nirmala Sitharaman Mon- day said as the heightened economic activity has pushed the Goods and Services tax Collections to a new high of above 2 lakh crore in March, and implementation of GST has helped poor as it lowered taxes on large items and exempted many essential goods and services from tax, compared to the pre-GST era.

In a post on social media portal X, she said that GST exemplifies cooperative federalism in India, empowering states with significant improvement in their tax buoyancy which reached to 1.15 from 0.72 in pre-GST era.

“GST collections crossed a landmark of ₹2 lakh crore thanks to heightened economicactivity,” Sitharaman said. India’s monthly GST collections hit the record highest ever in April, up 12.4% from a year earlier to ₹2.10 lakh crore, breaching the *2 lakh crore mark for the first time. “GST lowered taxes on many essential items compared to pre-GST rates,” Sitharaman said, adding that GST lowered tax on common items. like hair oil and soaps to 18% from 28% and electrical appliances to 12% against 31.5% be- fore. She also said that many essential items and services, such as unbranded food items, certain life-saving drugs, healthcare, education, public transport, sanitary napkins, hearing aid parts, and agricultural services are exempted from GST, ma- king it pro-poor.

 Her tweet came days after Bajaj Auto Chair- man Rajiv Bajaj attributed the rise in prices of two-wheelers to ‘overregulation’ of the market and high GST on two-wheelers. She also busted the notion that the increase in revenue was pocketed by the centre and added that the GST has improved tax buoyancy of states to 1.22 (for 2018-23), a significant improvement from 0.72 in pre-GST era. “Despite compensation ending, state re- venues remain buoyant at 1.15,” Sitharaman said. She said the GST Council, with a 75% majority vote requirement, assigns one-third voting power to the Centre & two-thirds to states, exemplifying cooperative federalism.

S-ET Image Source: Google

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