KNOWLEDGE ADDA - GPSC || GSSSB

Forwarded from The Golden Charcoal - UPSC/GPSC

KNOWLEDGE ADDA - GPSC || GSSSB

Simplified Explanation Record High GST Collections: India's GST collections exceeded ₹2.1 lakh crore in April, a 12.4% increase from the previous record. Economic Momentum: This surge is attributed to strong economic performance and efficient tax collection…

Question:
Discuss the role of GST in mobilizing resources for development in India.

Introduction:

The Goods and Services Tax (GST), introduced in 2017, is a landmark reform in the Indian taxation system aimed at enhancing economic integration and simplifying the tax structure.

Main Body:

Unified Tax Structure: GST replaced multiple indirect taxes, unifying over a dozen central and state levies into a single tax. This has reduced the complexity of the tax system, making it easier for businesses to comply and thus increasing the tax base.
Enhanced Revenue Collection: GST has significantly boosted government revenue, which is critical for funding development projects. For instance, a recent report highlighted that GST collections crossed ₹2.1 lakh crore in April, reflecting strong economic momentum and efficient tax administration. This record collection showcases GST's potential in resource mobilization.
Economic Efficiency: By mitigating the cascading effect of taxes, GST has made goods and services cheaper, fostering higher consumption and production levels. This stimulates economic activity across sectors, thereby aiding in job creation and overall economic growth.
Fiscal Federalism: GST fosters cooperative federalism by distributing the tax collected between the central and state governments, ensuring equitable economic development across regions.

Conclusion:

GST has emerged as a pivotal tool in India's economic framework, significantly aiding in resource mobilization. The consistent improvement in GST collections indicates its role in not only enhancing revenue but also in stabilizing the economy, thereby contributing substantially to national development.

www.tgoop.com/Knowledgeadda0/33157

497 viewsMay 3 at 07:06

Question:
Discuss the role of GST in mobilizing resources for development in India.

Introduction:

The Goods and Services Tax (GST), introduced in 2017, is a landmark reform in the Indian taxation system aimed at enhancing economic integration and simplifying the tax structure.

Main Body:

Unified Tax Structure: GST replaced multiple indirect taxes, unifying over a dozen central and state levies into a single tax. This has reduced the complexity of the tax system, making it easier for businesses to comply and thus increasing the tax base.
Enhanced Revenue Collection: GST has significantly boosted government revenue, which is critical for funding development projects. For instance, a recent report highlighted that GST collections crossed ₹2.1 lakh crore in April, reflecting strong economic momentum and efficient tax administration. This record collection showcases GST's potential in resource mobilization.
Economic Efficiency: By mitigating the cascading effect of taxes, GST has made goods and services cheaper, fostering higher consumption and production levels. This stimulates economic activity across sectors, thereby aiding in job creation and overall economic growth.
Fiscal Federalism: GST fosters cooperative federalism by distributing the tax collected between the central and state governments, ensuring equitable economic development across regions.

Conclusion:

GST has emerged as a pivotal tool in India's economic framework, significantly aiding in resource mobilization. The consistent improvement in GST collections indicates its role in not only enhancing revenue but also in stabilizing the economy, thereby contributing substantially to national development.

BY KNOWLEDGE ADDA - GPSC || GSSSB