In a recent event inaugurating 12 GST Suvidha Kendras in Gujarat, Finance Minister Nirmala Sitharaman emphasized the Finance Ministry’s commitment to not only bolstering GST revenue but also ensuring the inclusion of all business establishments under its ambit. The Suvidha Kendras aim to facilitate seamless GST registration and address concerns for businesses.
GST’s Positive Impact and Revenue Growth
Sitharaman highlighted the success of GST in the “one nation one tax” framework, noting a consistent increase in GST revenue annually and monthly. She credited GST for reducing tax rates on various items, providing relief to businesses. The elimination of double taxation has contributed to the upward trajectory of GST collections.
Challenges in Comprehensive Adoption
Despite the positive trends, Sitharaman acknowledged that certain establishments choose to stay outside the GST framework, remaining informal entities. She expressed the need for all businesses to come under the tax net, not just for immediate tax contributions but for the holistic benefit of the economy.
Formalizing the Economy for Collective Growth
Sitharaman stressed that staying outside the formal economy is detrimental to both the country and individuals. Formalization, she argued, is essential for capturing the true strength of the economy. The Finance Ministry aims to encourage businesses to join the formal economy, promoting transparency and contributing to the overall growth and development of the nation.
