With the implementation of GST 2.0 in the country, this indirect tax collection system will be simple and simple. However, in 2017, this GST was called ‘Gabbar Singh Tax’. Although earlier, its name was Goods and Service Tax, but in view of its complexity, the opposition tried to surround the government. Congress leader Rahul Gandhi criticized GST and called it the BJP’s ‘Gabbar Singh Tax’. Rahul Gandhi called GST ‘Gabbar Singh Tax’ because according to him, the government was looting the earnings of the poor through this tax. Just like Gabbar Singh, the villain of the film Sholay, used to forcibly recover from the villagers.
Apart from politics, GST has been considered one of the biggest reforms of India so far. This made it easy to pay tax for business, reduced the tax burden of the general public and improved from time to time. The average rate of GST was 14.4% in 2017, which declined to 11.6% by September 2019 and according to SBI’s research report, GST may decrease in 2.0 to 9.5%. The main objective of implementing GST was to implement the same tax system in the whole country instead of many different taxes. Now the GST 2.0 that has been brought is to make it better and better for common people.
People were in confusion from different slabs
When GST was implemented, it had four slabs of 5%, 12%, 18% and 28%. Different items and services were kept in different slabs. However, initially people were very confused about this. Initially, the government has kept so much slab so that the public will get relief on one side and the government’s earnings remain on the other side. Initially, the states feared revenue deficit and they were guaranteed compensation for five years. So initially it was not easy to take big decisions like reducing slabs.
Technical problems were challenges
There were technical problems in the onset of GST. There were also problems like digital returns and challan matching for small businessmen. Then the government’s priority was to stabilize the system, not to reduce the slab. By 2020, the Korona epidemic worsened the condition. Tax collection reduced, the burden of health and welfare increased on the government and states. At that time, the fiscal deficit would increase further by reducing tax rates. However, after 2017, there was a change in rates several times. Many items were brought out of 28% slab.
Now why GST 2.0?
The GST collection is continuously increasing after the epidemic. The system strengthened due to better technology, tough investigation and theft. Now the government has the ability to withstand the losses caused by tax cuts. Earlier it was necessary to add small traders, improve technical disturbances and make returns-refund easier. Now it is possible to make great structural improvements with years of experience and data. The tax which was once called Gabbar Singh Tax, has become easy now. It is expected that GST 2.0 will make it easier for both business and the government and the general public will also get a big benefit.