Is GST One of India’s Greatest Success Stories in a Decade? Surjit Bhalla Weighs In (IANS Exclusive)
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Synopsis
Discover why Dr. Surjit Bhalla believes GST is among India’s most remarkable achievements in the last ten years. This article delves into the impacts of GST on the economy, compliance rates, and its role in India's rising global stature, offering insights into the future of India's financial landscape.
Key Takeaways
- GST has significantly increased tax revenues.
- The formal tax net has expanded with more individuals and businesses participating.
- India is now the fourth-largest economy globally.
- Defense preparedness enhances both national security and economic confidence.
- Further reforms in GST could simplify and promote growth.
New Delhi, July 1 (NationPress) According to noted economist and former IMF Executive Director, Dr. Surjit Bhalla, India’s Goods and Services Tax (GST) has become one of the most significant success stories of the past decade, indicating a flourishing formal economy and increasing compliance rates. In a special interview with IANS, Bhalla emphasized that GST has substantially boosted tax revenue and expanded the number of businesses and individuals included in the formal tax framework.
"The GST has shown remarkable performance, with a growing number of individuals joining the formal tax net. This is a positive development," he stated.
Bhalla expressed to IANS that since the rollout of GST in 2017-18, which replaced the previous value-added tax system, the Indian economy has performed reasonably well.
"It stands out as one of the major success stories over the last ten years," Bhalla remarked, crediting the favorable results to enhanced compliance, improved efficiency, and a wider tax base.
"Both government insiders and outsiders recognize that the economy has performed quite well, and GST's substitution of the value-added tax has had a beneficial impact," the esteemed economist noted.
While Bhalla acknowledged the potential for further reforms in GST to simplify and enhance growth, he stressed that the existing tax framework has already established a solid groundwork for India's future economic journey.
On the subject of India’s ascending global prominence, Bhalla pointed out that India is now the fourth-largest economy worldwide and is the fastest-growing among major economies.
He highlighted that with advancements in education and healthcare translating into improved productivity, India is positioned to achieve even greater growth in the upcoming years.
Discussing the recently initiated Operation Sindhu Sudarshan, Bhalla described it as a highly positive measure, asserting that enhanced defense readiness not only supports national security but also fosters economic confidence.
"Defense is a critical national priority. Increased defense expenditure leads to greater security and fortifies the economy. This operation will bolster both defense readiness and economic confidence," he asserted.
Point of View
It is evident that GST has played a pivotal role in transforming India's economy. The shift towards a more formalized tax structure not only enhances compliance but also strengthens national financial systems. As we analyze these developments, it is crucial to continue supporting progressive reforms that will ensure sustained economic growth and stability for all.
NationPress
01/07/2025
Frequently Asked Questions
What is GST?
GST, or Goods and Services Tax, is a comprehensive tax system implemented in India that replaces multiple indirect taxes, streamlining the tax structure.
How has GST impacted the Indian economy?
GST has significantly increased tax revenues, broadened the tax base, and improved compliance among businesses and individuals.
When was GST implemented in India?
GST was officially implemented on July 1, 2017.
Who is Dr. Surjit Bhalla?
Dr. Surjit Bhalla is a respected economist and former Executive Director of the International Monetary Fund (IMF), known for his insights on economic policies.
What are the future prospects of India's economy?
With improvements in education and healthcare, along with a strong GST framework, India is well-positioned for robust economic growth in the coming years.
