The GST regime

The GST regime

The GST regime

India’s Goods and Services Tax (GST) is all set to become a reality from next fiscal, overhauling the country’s intricate cascading or double tax system. It’s one of the major tax reforms in independent India aimed at modernising the Asia’s third largest economy.

GST Constitution Amendment Bill, passed by Parliament and now being ratified by state assemblies, aims to take the taxation system out of the cobweb of central, state and inter-state sales taxes and to bring in an era of a “one nation, one tax” concept.

At least theoretically, it is being argued that India can now hope for a change in its perception of business world that the country is an infamously cumbersome place to do business. The country always had various complicated systems and was notorious for its ‘inspector raj’ and ‘licence raj’, which every government vowed to end during the seven decades of independence. The only difference is that the words are changed to be more politically correct as “ease of doing business” that sounds more soothing than saying that “we are going to end inspector and licence raj”.

Yet, many surveys revealed that shifting to a GST regime would help ease the burdens of double taxation and other distortions caused by the current system besides lowering to the barriers of inter-state commerce. Many see this law as a win-win situation for all the manufacturers, suppliers, retailers and above all the consumers – as things would help bring down prices.

While finance minister Arun Jaitley argues that GST would help convert India into a uniform market, there are experts who argue that its real benefits and possible impact on the economy would be known only after some years may be after four-five years after the new taxation stabilises. There is another view that the size of the boost that the economy may get would be very limited.

But the issue at the core is whether the benefits of lower prices would be passed on to the common man already overburdened due to spiralling inflation and higher cost of living. If that is not going to happen, the so-called positive impacts, like ease of doing business, increasing compliance, raising the GDP rate by 1-2 per cent and growing government tax revenue, will not make any sense to them.

The present understanding is that what the GST will do at a basic level is replace all the indirect taxes that currently exist. The central excise duty, value added tax, service tax, octroi, luxury tax and so on will get substituted with one GST and basic goods are likely to become marginally cheaper. But certain services could become costlier as the service tax, at present 14 per cent, could increase making services more expensive. Which means, anything that falls under the category of a service, other than specifically mentioned exception, could be costlier. That will pinch the middle class. If you eat out often and travel a lot, the bill will be more.

Despite all arguments in favour and against the GST, what ultimately matters is whether it eventually would make life less costly, easier and efficient. Let’s hope for the “Achhe Din”.

3 comments

  • I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my opinion, if all site owners and bloggers made good content as you did, the internet will be much more useful than ever before.|
    I couldn’t refrain from commenting. Very well written!|
    I’ll right away grab your rss feed as I can’t in finding your e-mail subscription link or e-newsletter service. Do you have any? Please permit me recognise in order that I could subscribe. Thanks.|
    It’s perfect time to make some plans for the future and it’s time to be happy. I have read this post and if I could I wish to suggest you some interesting things or advice. Maybe you could write next articles referring to this article. I want to read even more things about it!|
    It is appropriate time to make a few plans for the long run and it’s time to be happy. I’ve read this submit and if I may I want to suggest you few attention-grabbing things or suggestions. Perhaps you could write subsequent articles referring to this article. I want to learn more issues approximately it!|
    I’ve been surfing on-line greater than three hours nowadays, but I by no means discovered any fascinating article like yours. It is beautiful value sufficient for me. Personally, if all web owners and bloggers made excellent content as you probably did, the net will probably be a lot more helpful than ever before.|
    Ahaa, its pleasant dialogue concerning this paragraph at this place at this webpage, I have read all that, so at this time me also commenting at this place.|
    I am sure this paragraph has touched all the internet visitors, its really really pleasant paragraph on building up new web site.|
    Wow, this article is pleasant, my younger sister is analyzing these things, thus I am going to convey her.|
    bookmarked!!, I love your blog!|
    Way cool! Some very valid points! I appreciate you writing this post and the rest of the website is very good.|
    Hi, I do believe this is a great site. I stumbledupon it 😉 I may return once again since i have book marked it. Money and freedom is the best way to change, may you be rich and continue to help others.|
    Woah! I’m really loving the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very difficult to get that “perfect balance” between superb usability and appearance. I must say that you’ve done a fantastic job with this. Additionally, the blog loads super fast for me on Firefox. Exceptional Blog!|
    These are actually impressive ideas in concerning blogging. You have touched some nice factors here. Any way keep up wrinting.|
    I like what you guys are up too. This type of clever work and exposure! Keep up the great works guys I’ve incorporated you guys to blogroll.|
    Howdy! Someone in my Myspace group shared this site with us so I came to give it a look. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers! Outstanding blog and fantastic design.|
    I like what you guys tend to be up too. This kind of clever work and reporting! Keep up the great works guys I’ve added you guys to my personal blogroll.|
    Hey there would you mind sharing which blog platform you’re using? I’m planning to start my own blog in the near future but I’m having a difficult time deciding between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different then most blogs and I’m looking for something completely unique. P.S Apologies for getting off-topic but I had to ask!|
    Hi would you mind letting me know which hosting company you’re utilizing? I’ve loaded your blog in 3 different browsers and I must say this blog loads a lot faster then most. Can you suggest a good internet hosting provider at a honest price? Thanks a lot, I appreciate it!|
    I like it when folks come together and share ideas. Great website, continue the good work!|
    Thank you for the good writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! However, how can we communicate?|
    Hello just wanted to give you a quick heads up. The text in your post seem to be running off the screen in Chrome. I’m not sure if this is a format issue or something to do with web browser compatibility but I figured I’d post to let you know. The layout look great though! Hope you get the problem fixed soon. Thanks|
    This is a topic which is near to my heart… Thank you! Where are your contact details though?|
    It’s very simple to find out any matter on web as compared to textbooks, as I found this piece of writing at this web page.|
    Does your website have a contact page? I’m having trouble locating it but, I’d like to send you an e-mail. I’ve got some creative ideas for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it grow over time.|
    Hey there! I’ve been reading your blog for a while now and finally got the bravery to go ahead and give you a shout out from Dallas Texas! Just wanted to tell you keep up the good work!|
    Greetings from California! I’m bored to tears at work so I decided to browse your blog on my iphone during lunch break. I enjoy the knowledge you provide here and can’t wait to take a look when I get home. I’m surprised at how quick your blog loaded on my cell phone .. I’m not even using WIFI, just 3G .. Anyhow, fantastic site!|
    Its like you read my mind! You seem to understand so much about this, like you wrote the ebook in it or something. I believe that you simply could do with a few percent to drive the message home a bit, however other than that, this is magnificent blog. A great read. I will certainly be back.|
    I visited many sites except the audio quality for audio songs existing at this site is actually marvelous.|
    Hi, i read your blog occasionally and i own a similar one and i was just wondering if you get a lot of spam comments? If so how do you protect against it, any plugin or anything you can recommend? I get so much lately it’s driving me insane so any support is very much appreciated.|
    Greetings! Very helpful advice in this particular post! It’s the little changes which will make the most important changes. Thanks a lot for sharing!|
    I really love your website.. Pleasant colors & theme. Did you make this web site yourself? Please reply back as I’m looking to create my own site and would love to learn where you got this from or just what the theme is called. Many thanks!|
    Hello there! This post could not be written much better! Going through this article reminds me of my previous roommate! He constantly kept preaching about this. I will send this post to him. Fairly certain he’s going to have a good read. I appreciate you for sharing!|
    Wow! This blog looks just like my old one! It’s on a completely different topic but it has pretty much the same layout and design. Superb choice of colors!|
    There is certainly a lot to know about this topic. I really like all the points you made.|
    You have made some decent points there. I checked on the internet to find out more about the issue and found most individuals will go along with your views on this website.|
    Hi, I read your blogs daily. Your humoristic style is witty, keep doing what you’re doing!|
    I simply couldn’t leave your website prior to suggesting that I extremely loved the usual info an individual supply to your visitors? Is going to be again steadily to check out new posts|
    I want to to thank you for this great read!! I absolutely loved every bit of it. I’ve got you book marked to look at new things you post…|
    Hi, just wanted to mention, I liked this post. It was practical. Keep on posting!|
    Hi there, I enjoy reading through your post. I like to write a little comment to support you.|
    I constantly spent my half an hour to read this webpage’s posts everyday along with a mug of coffee.|
    I constantly emailed this weblog post page to all my friends, because if like to read it next my links will too.|
    My coder is trying to convince me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am anxious about switching to another platform. I have heard excellent things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any kind of help would be really appreciated!|
    Hello! I could have sworn I’ve visited your blog before but after looking at some of the articles I realized it’s new to me. Nonetheless, I’m definitely pleased I stumbled upon it and I’ll be book-marking it and checking back frequently!|
    Great article! That is the kind of info that are supposed to be shared across the net. Disgrace on Google for not positioning this post higher! Come on over and consult with my site . Thank you =)|
    Heya i’m for the first time here. I found this board and I find It truly useful & it helped me out a lot. I hope to give something back and aid others like you helped me.|
    Hello there, There’s no doubt that your blog could be having web browser compatibility problems. When I look at your website in Safari, it looks fine however when opening in Internet Explorer, it’s got some overlapping issues. I just wanted to provide you with a quick heads up! Other than that, fantastic blog!|
    Somebody necessarily help to make critically posts I’d state. That is the first time I frequented your web page and up to now? I surprised with the research you made to make this particular put up extraordinary. Excellent activity!|
    Heya i’m for the primary time here. I found this board and I find It truly helpful & it helped me out a lot. I am hoping to provide something back and aid others like you aided me.|
    Hi there! I just want to offer you a big thumbs up for your great information you’ve got right here on this post. I will be coming back to your website for more soon.|
    I always used to read piece of writing in news papers but now as I am a user of web so from now I am using net for posts, thanks to web.|
    Your method of explaining everything in this post is in fact fastidious, every one be able to without difficulty understand it, Thanks a lot.|
    Hello there, I discovered your web site via Google at the same time as searching for a similar subject, your web site came up, it looks good. I have bookmarked it in my google bookmarks.
    Hi there, just became alert to your weblog via Google, and found that it’s truly informative. I am going to watch out for brussels. I’ll appreciate if you happen to continue this in future. Lots of other folks might be benefited from your writing. Cheers!|
    I am curious to find out what blog platform you happen to be utilizing? I’m having some small security issues with my latest blog and I’d like to find something more safeguarded. Do you have any solutions?|
    I am extremely impressed with your writing skills as well as with the layout on your blog. Is this a paid theme or did you modify it yourself? Either way keep up the excellent quality writing, it’s rare to see a nice blog like this one today.|
    I am extremely inspired along with your writing talents and also with the layout for your blog. Is this a paid subject or did you modify it yourself? Either way stay up the excellent quality writing, it is rare to see a great blog like this one today..|
    Hello, Neat post. There’s an issue along with your site in web explorer, may test this? IE still is the market chief and a big component to folks will miss your excellent writing due to this problem.|
    I’m not sure where you are getting your info, but great topic. I needs to spend some time learning more or understanding more. Thanks for wonderful information I was looking for this information for my mission.|
    Hello, i think that i saw you visited my website thus i came to “return the favor”.I’m trying to find things to enhance my web site!I suppose its ok to use {some of|a few of\

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This

Share This

Share this post with your friends!