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Cabinet approves 309 Km long new line between Mumbai and IndoreKGST - As is trite law, a suit filed prior has to be adjudicated so as to bar a suit filed subsequently & that doctrine of res judicata is inapplicable without a previous adjudication: HCCabinet approves seven major schemes for improving farmers' lives and livelihoodsGST - Adjournment was granted for two weeks but the proper officer passed the orders before the period was over - Orders set aside and matter remanded: HCCabinet approves one more semiconductor unit under ISMTurkey keen to join BRICS in effort to look beyond WestGST - Shipping bill can be considered as an application for refund of IGST in terms of rule 96: HCCabinet approves Digital Agriculture Mission with outlay of Rs. 2817 CroreIndia’s manufacturing PMI marginally down to 57.5 in AugustGST - Petitioner is permitted to pay amounts assessed in 24 equal monthly instalments together with interest - Recovery proceedings to be kept in abeyance: HCCCPA imposes penalty of Rs 5 Lakh on Shankar IAS AcademySC sets up Judge-headed panel to sort out protesting farmers’ grievancesGST - S.80 - Instalment facility granted to pay defaulted tax - If petitioner commits any default in payment of even a single instalment, it is open to respondents to proceed for recovery: HCPM to be on official tour to Singapore & Brunei between Sept 3 to 5GST - Allegation is that petitioner availed ITC in contravention of s.16 - Petitioner submits that they paid output tax without utilising ITC in question - Matter remanded: HCCBDT issues transfer order of 17 Addl / JCITsCBDT promotes 6 IRS officers as CCITThe making of an 'Input Service Distributor'President Murmu unwraps new Insignia and flag of Supreme Court of IndiaCBIC amends Sea Cargo Manifest & Transshipment Regulations‘Kavach’ system to be deployed in mission mode: Rail MantriMoS unveils New Single Unified Pension Form for Senior CitizensGST mop-up in August month rises to Rs 1.75 lakh crore

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GST - Is it a win-win situation for all?


GST

I do not know whether it is going to be ‘win-win situation’ on not, but looking to the following inherent pitfalls, I have my doubts that it will genuine give the benefits, which are widely talked about including the one that GST will boost India’s growth in GDP by 2%:
1) The dual rate of GST (i.e. Central and State GST) is simply duplication of timely tested, relatively well settled and industry friendly existing Indirect Tax Systems i.e. Central Excise / Service-tax (at the Central level) and VAT (at the State level). What new thing, the proposed GST is going to offer other than the existing Indirect tax regime in India. Mind you, dual rate of GST means dual tax administration with added confusion.
2) If the Govt really wants to make further fine tune the existing Indirect taxes, it should make Central Sales Tax, Vatable, which is an expense today to the Industry. If this is done with proper internet networking across the Country, then where is the need for GST in this country?
3) GST is ‘copy paste’ from Western and European countries - except USA, where still sales tax is operational. The constitutional, political & business environment of these Countries is totally different than India. Such ‘copy paste’ GST would unnecessary hamper the image of India abroad, if not implemented properly.
4) While taking cue of implementation of GST from western countries, we are conveniently forgetting to include local body taxes (e.g. Stamp Duties, Entry Tax or Octroi), Liquor, Tobacco, Electricity and Petroleum products. If we include these items (albeit too difficult to include) in the proposed GST regime, it will serve true purpose of one rate of indirect taxation in Indian and would achieve magical 2% Growth in GDP in real sense.

Sanjay Prasad 22/02/2015

 

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