The Number of Registered Tax Assessees Have Swelled Post GST

Since its implementation in July 2017, the Goods and Services Tax (GST) has been both praised and criticized for its impact on the Indian economy. However, one undeniable effect of GST has been the significant increase in the number of registered tax assessees in India.

According to data released by the Ministry of Finance, there were approximately 64.7 lakh GST assessees as of March 2018, up from approximately 60 lakh assessees in December 2017. This represents an increase of nearly 8% in just three months.

While there are several factors that have contributed to this increase, the most significant one is the fact that GST has made it easier for small and medium-sized businesses to register for and comply with the tax system. Under the old tax regime, businesses were required to register with multiple state and central authorities, each with its own set of rules and regulations. This made the process of registering for and complying with the tax system extremely cumbersome and time-consuming, especially for small and medium-sized businesses that often lacked the resources to navigate the system.

With the introduction of GST, however, the process of registering for and complying with the tax system has been considerably streamlined. Under GST, businesses only need to register with a single authority, the GST Council, and all GST-related transactions are tracked and monitored through a centralized system. This has not only made it easier for businesses to register for and comply with the tax system, but it has also helped to eliminate instances of tax evasion and corruption.

Another factor that has contributed to the increase in the number of registered GST assessees is the fact that GST has brought a large number of previously unregistered businesses into the formal economy. Prior to GST, many small and medium-sized businesses operated in the informal sector, often evading taxes and operating outside the purview of the tax system. With the introduction of GST, however, these businesses have been brought into the formal economy, and are now required to register for and comply with the tax system.

Conclusion

Overall, the increase in the number of registered GST assessees is a positive sign for the Indian economy. It indicates that GST has succeeded in its goal of streamlining the tax system and making it easier for businesses to register for and comply with the tax system. It has also helped to bring a large number of previously unregistered businesses into the formal economy, which will have long-term benefits for the Indian economy.