What are the important tax reforms in India since 1991?

Question

Ghissu Editorial · Accepted Answer

Major reforms since 1991 include lower income tax rates and fewer slabs, VAT replacing cascading sales tax (Andhra Pradesh in 2005) and GST in 2017. Faceless assessment and e-filing since 2014 modernised administration, as collections nearly doubled from ₹6.38 lakh crore (2013-14) to almost ₹12 lakh crore (2018-19).

**Introduction**

Since 1991, India’s tax reforms have modernized fiscal policy to support growth, simplify taxes, and improve compliance, with GST and digitalization as pivotal changes affecting states including ==Andhra Pradesh⟦3⟧⟦2⟧⟦1⟧==. These reforms have aligned India’s tax system with global standards, facilitating economic integration and investment.

**Key Tax Reforms**

2. **Indirect Tax Reforms and GST**: VAT replaced cascading sales tax in the 2000s; GST in 2017 unified excise, service tax, VAT, and CST, lowering logistics costs and easing interstate trade, with the GST Council⟦4⟧ harmonizing rates including ==Andhra Pradesh==. The GST also enhanced transparency and reduced tax evasion opportunities.

**Impact on Economy**

3. **Revenue and Compliance Gains**: Tax collections rose from ₹6.38 lakh crore (2013-14) to ₹12 lakh⟦5⟧ crore (2018-19), reflecting broader compliance; however, ==Andhra Pradesh==’s CAG audits reveal ₹2,772 crore outstanding revenue and ₹968 crore excess payments in CFMS audit. These gaps highlight the need for stronger enforcement.

4. **Digital Transformation**: Initiatives like Transparent Taxation⟦6⟧ - Honouring the Honest⟦7⟧ and faceless assessments have modernized tax administration, though challenges remain in ==Andhra Pradesh==’s tax departments. E-filing and digital platforms have improved taxpayer convenience and reduced corruption.

**Way Forward**

6. **Expand Digital Infrastructure**: Use National Single Window System and SPICe+ to integrate tax and business processes, easing compliance. Further simplification of GST filing and resolving technical issues will benefit MSMEs.

**Conclusion**

India’s tax reforms have created a more transparent and efficient system, but resolving administrative bottlenecks in states like ==Andhra Pradesh== is essential for sustained growth and equitable development. Continued reforms will support the vision of Viksit Bharat @2047.

1991 నుండి భారతదేశంలో ముఖ్యమైన పన్ను సంస్కరణలు ఏమిటి?

Model answer

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