A S&Co Story - How GST Has Evolved

 


Inside a CA Office

How GST Has Evolved

1st July 2025 - S & Co. Office
The office was quiet except for the clatter of keyboards. At the pantry corner, a fresh pot of coffee filled the air with warmth.

Prajakta, now a year into her job, walked up to the table where Jagruti - the firm’s most experienced - with Pooja, the GST specialist were seated.

“Happy GST Day!” Prajakta said.

Jagruti smiled. “Eight years already! It feels like just yesterday we were buried in VAT, Service Tax, Excise...”

Pooja chuckled, “And multiple returns, multiple registrations, overlapping jurisdictions. GST was chaos at first, but it brought in a new era.”

Prajakta leaned in, eager to learn. “So much has changed since then. But honestly, I still get confused by the constant updates.”

Jagruti nodded. “That’s fair. GST has been dynamic - almost like a living organism evolving through trial, error, and feedback.”

Pooja added, “Remember the early days? GSTR-1, 2, and 3 were all supposed to be filed monthly. Then came GSTR-3B as a stopgap... and it stayed! Filing became easier, more practical.”

Jagruti continued, “Yes, and the simplification of compliance for small taxpayers - quarterly returns under QRMP, composition schemes for businesses with modest turnover - it reduced compliance burdens.”

Prajakta asked, “And what about ITC? I hear so much about ineligible credits, matching, reversals…”

Pooja smiled. “Ah, Input Tax Credit - GST’s most powerful yet misunderstood feature. In theory, it ensures there's no cascading tax. But the rules keep evolving. Initially, we struggled with invoice matching. Then came GSTR-2A and 2B, guiding us on eligible credits. Now it’s all about reconciliation and discipline.”

Jagruti interjected, “The GST Network deserves credit too - eight years ago, it was glitchy. But now, the GSTN portal is fairly robust. Returns, registrations, e-way bills, e-invoicing - everything is digital and linked.”

“E-invoicing especially,” said Pooja. “It has brought transparency and curbed fake invoicing. Today, large and even mid-sized businesses must generate e-invoices in real-time. It plugs revenue leaks and enables accurate credit flow.”

Prajakta looked thoughtful. “So GST has grown up?”

They laughed.

Jagruti said, “You could say that. It’s still not perfect. Some compliance areas are too complex for small businesses.”

“But the direction is clear,” Pooja added. “The shift is towards data-driven taxation, as far as possible minimal human interface, and seamless credit flow. It’s demanding, but fair.”

Prajakta smiled. “It feels less intimidating now. Thanks!”

Jagruti handed her a coffee. “GST may look like a tough maze, but once you understand the map, it’s manageable. And remember - every July 1st, we’ve not just survived, we’ve grown with it.”

They raised their cups to eight years of learning, unlearning, and simplifying the complex - one return at a time.

The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation. 

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