{"id":39920,"date":"2025-03-27T20:26:47","date_gmt":"2025-03-27T14:56:47","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=39920"},"modified":"2025-04-01T17:12:58","modified_gmt":"2025-04-01T11:42:58","slug":"gst-regime-public-accounts-committee-recommendations","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/27-03-2025\/gst-regime-public-accounts-committee-recommendations","title":{"rendered":"Public Accounts Committee Recommendations For GST Regime"},"content":{"rendered":"\n<p><strong>Syllabus :GS 3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/21-03-2025\/pac-flag-shortcomings-swadesh-darshan-scheme\"><strong>Public Accounts Committee (PAC)<\/strong><\/a> has recommended a simplified <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/23-09-2024\/7-years-of-goods-and-services-tax\">Goods and Services Tax (GST) <\/a>regime in its 19th report.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/23-09-2024\/7-years-of-goods-and-services-tax\"><strong><u>Goods and Services Tax (GST)<\/u><\/strong><\/a><strong>&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The idea of Goods and Services Tax (GST) in India was first proposed during Atal Bihari Vajpayee&#8217;s tenure.\n<ul class=\"wp-block-list\">\n<li>In December 2014, the Constitution (122nd Amendment) Bill was introduced, passed in 2015, and ratified in 2016 as the 101st Constitutional Amendment, paving the way for GST.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/23-09-2024\/7-years-of-goods-and-services-tax\">GST <\/a>was officially launched on 1st July 2017 by Prime Minister Narendra Modi, marking a significant step in India\u2019s tax reform.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It is a <strong>destination-based consumption <\/strong>tax levied at all stages, from manufacture to final consumption, with credit for taxes paid at previous stages.<\/li>\n\n\n\n<li>The tax burden is ultimately borne by the final consumer, and the revenue is allocated to the authority governing the place of consumption (place of supply).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Objectives&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/23-09-2024\/7-years-of-goods-and-services-tax\"><strong>GST <\/strong><\/a>aims to simplify India&#8217;s indirect tax system by combining multiple Central and State taxes into one, reducing the cascading effect and creating a unified national market.<\/li>\n\n\n\n<li>It stimulates economic growth, broadens the tax base, increases trade volumes, and improves tax compliance.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The implementation of GST has faced challenges, including complex compliance requirements and high costs for small businesses.&nbsp;<\/li>\n\n\n\n<li>Frequent changes in tax rates and multiple tax slabs have caused confusion.<\/li>\n\n\n\n<li>Issues with refund processes create liquidity problems, and cross-border trade is complicated by varying GST rates across states.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Latest Recommendations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/21-03-2025\/pac-flag-shortcomings-swadesh-darshan-scheme\"><strong>Public Accounts Committee (PAC<\/strong>)<\/a> urged&nbsp; the Finance Ministry to review the current framework to eliminate unnecessary complexities and ease compliance.&nbsp;<\/li>\n\n\n\n<li>The Committee expressed concerns about issues in the<strong> biometric-based Aadhaar authentication process,<\/strong> potentially hindering the &#8220;One Nation One Tax&#8221; vision.<\/li>\n\n\n\n<li><strong>Other Recommendations<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Streamlining the process by consolidating forms<\/strong>, reducing filing frequency, and introducing a tiered compliance approach for smaller businesses.<\/li>\n\n\n\n<li><strong>Improving the portal&#8217;s ease of use<\/strong> and providing clearer guidance for taxpayers during filing.<\/li>\n\n\n\n<li><strong>Addressing the issue of harsh criminal penalties<\/strong> for unintentional errors in compliance, particularly for honest taxpayers.<\/li>\n\n\n\n<li><strong>Using data analytics and AI tools<\/strong> to accurately project GST revenue, addressing the decline in indirect tax share.<\/li>\n\n\n\n<li><strong>Implementing a more efficient refund system<\/strong> with clear timelines, regular updates, and a dedicated grievance redressal mechanism.<\/li>\n\n\n\n<li><strong>Simplifying GST compliance for MSMEs<\/strong> by automating return filing and refund processing with reduced frequency and easier online reporting.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>Source :TH<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Public Accounts Committee (PAC) has recommended a simplified Goods and Services Tax (GST) regime in its 19th report.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39920","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=39920"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39920\/revisions"}],"predecessor-version":[{"id":40139,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39920\/revisions\/40139"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=39920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=39920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=39920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}