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  • Category: Miscellaneous

    Do you agree or disagree that autonomy of States become more weakened due to GST tax system?

    GST tax system will make State governments to dependent more on Center for the economic help. The taxes paid by all people of India will directly reach Central government and the Center will distribute this money according to certain norms and also on its wish. So State governments will loose their autonomy as the conditions existed before in economic matter and has to depend on Center for economic matters. If the State governments have friendly relationship or the same party ruled government at the Center will get more benefited but the other State governments who are against in principle matters of Central ruling party will be severely affected in economic matters. Due to this The Center and State relationships become weakened. What is your opinion folks.
  • #600931
    There should be a fixed percentage of taxes to state government from the taxes levied from that particular state. Otherwise as you said the State Governments will become much dependent on Central Government. It should not be left to only centrals will and wish. One of my friend who is a Chartered accountant told me that there will be a ratio of taxes to distribute it between the centre and state. I don't know whether he is correct or not. Even the central Government gives as per the requirement always there will be a hue and cry. So leaving a loose end is very very unwanted . Central Government and concerned officers should think and make a correct way. Otherwise the internal relations will get spoiled completely.
    drrao
    always confident

  • #600933
    There is no issue of states losing their autonomy because of GST. Even the states did not complain that way. Now that they have all reached a consensus means they are convinced and satisfied with the GST arrangement and its benefits. Issues if any can be know on implementation and practical experience.

    The one problem near to a slight discrimination was for the manufacturing states like TN, Mahrashtra etc who will stand to lose because of abolition (subsuming) of certain taxes like excise. However their concerns are to be met by the initial extra allocation for them. When local goods become costly people resort to imports. That is why it needs a uniform and easily implementable, non- confusing method of taxation. Due to the arbitrary interpretation and taxation of online sales by states like Kerala, many online sales portals discontinued dispatching to and dealing with buyers in Kerala. Now with GST, that complexity is removed and online buy-sell becomes more easy . Simplified procedures will enhance trade and commerce and that will lead to better compliance. So states need not worry about these.

    My opinion still on GST is that the ultimate buyer only suffers. He has to incur more in everything overall. Manufacturers and traders recover the tax paid by them , states and centre get tax easily and without much efforts, but the final buyer has to bear the burden of all these.

  • #600937
    Venkat Sir, At present as most of the States are ruled by BJP party or its partners are ruling. So the BJP government at Center has no problem in getting consent from most of the States. Later if the scene become reverse the actual problems of this system will come out. The second thing is the State which produce goods in large quantities will loose much because the benefit of tax goes to the region where they got sold.

  • #600939
    It is a very complex subject, all the details of which have not yet been finalised. But only one thing can be stated without any doubt that with the introduction of GST, ALL state governments will be benefitted. On the other hand, common people and businessmen will have to face less harrassment due to uniform tax structure across the country.
    Caution: Explosive. Handle with care.

  • #600948
    I wont agree with the author. Indian democracy set up is such that group of states make the center and the central government has to help the states in its development. Previously there was five year plans and the planning commission used to address the growth of each state, now the NEETI ayog is doing that favor. Slowly the center is taking the full control of states to check corruption in the guise of big projects. With general and service tax controlled at its disposal, the Union government is now poised to help the states as per their required funds and also the development initiated for the previous funds. There is always a tiff between the ruling center and opposition parties controlling the state that the funds given by center are shown as the state owned initiated program and that would be checked now. So I fully support the total involvement of central government in financing every state as per the population and requirement.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #600958
    Mohan sir, Don't you think it will give more funds to its own party ruling and it's partner states? Recently it supported farmers of UP state after winning elections to that state leaving the agony of farmers of all other states? It announced packages to Bihar like states in huge amounts in order to establish its win in the State elections. Don't you think it don't show favour to its own and friendly ruled states?

  • #600959
    OMG! What is the relationship between GST and farmers' compensation package (announced during/after natural disaster)? Is such package covered under GST?
    Caution: Explosive. Handle with care.

  • #600960
    Center is not having partisan attitude as told by Ramakrishna. The Kochi Metro is the best example which is purely funded by Delhi under smart city project and the opposition state is benefited.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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