Tamil Nadu

GST is a pro-people reform: Governor

Tamil Nadu Governor R.N. Ravi. File photo

Tamil Nadu Governor R.N. Ravi. File photo

Calling the Goods and Services Tax (GST) a pro-people reform, Tamil Nadu Governor R.N. Ravi has said that by increasing the tax base and reducing the average tax rates, the Centre has ensured buoyancy in tax collections and reduced taxes on essentials.

Speaking at an event to mark the five years of the tax regime, he said the GST had helped to realise the goal of ‘One Nation, One Market’ by bringing most indirect taxes under one umbrella. The uniformity of tax on supplies of goods and services; uniform processes across the country; simpler registrations and refunds; minimal physical interface; information technology-driven systems; and the free flow of goods were some benefits of the GST.

He told tax officials to aim for ease of doing business; facilitate domestic trade; and further reduce the burden on account of compliance.

M.V.S. Choudary, Chief Commissioner of GST and Central Excise, Tamil Nadu and Puducherry Zone, said that when a study was conducted on the impact of the GST, consumers said they were saving at least 4% on their household monthly expenses. “The average tax rates are low under the GST. The tax base has expanded and compliance has improved dramatically. The tax base has doubled from 60 lakh to about 1.2 crore,” he said.

As for the income on account of the GST, “all-India revenue for 2021-22 is ₹14,74,501 crore, including the GST on imports. Tamil Nadu has contributed around 8% (₹85,190 crore), as against the all-India revenue of ₹10,70,286 crore, excluding the GST on imports,” he said.

The GST had also ended long queues of trucks and goods carriers at highway toll plazas. “There is an improvement of over 33% in transport time. This has been made possible by the e-way bill system,” Mr. Choudary said. From April 2018 to May 2022, 272 crore e-way bills had been generated. In May 2022 alone, 275.08 lakh e-way bills had been generated for inter-State movement of goods and 461.09 lakh e-way bills for intra-State movement of goods. “Tamil Nadu accounts for about 9% of the inter-State movement of goods and 10% of the intra-State movement of goods. It ranks 4th and 3rd respectively, signifying a major contribution to the total business activity involving movement of goods,” he said.

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Printable version | Jul 2, 2022 8:12:12 am | https://www.thehindu.com/news/national/tamil-nadu/gst-is-a-pro-people-reform-governor/article65589163.ece