No life without Sun
Presently due to the transition period there is utter confusion and these clouds will be going away after substantial time only. As Govt has given concessional rates of GST for many items as well as categories the overall picture is very bright and economy is poised to grow.
For example the restaurants having turnover of less than Rs 50 lac in a year, have to pay only 5% GST. Likewise many other categories will be benefitted.
So we should be patient and should not conclude a negative note so early. In fact GST is going to make ease of business in near future. Whatever propoganda or rumours are being spread in the market about GST are either the miscreants or the tax evaders.
Knowledge is power.
The greatest wealth in this world is mental peace and good health.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
But in the name of GST some vendors in Hyderabad are trying to sell some items at a higher rate. People who have some idea about this system are protesting and innocent are purchasing at the rate decided by the vendor.
A note book costing Rs.10/- before GST implementation is being sold at Rs.15/- by a book sellers. Then local people asked them to show the proof, he has given at the old rate.
This type of incidents are creating some unnecessary problem.
Dr. Paresh B. Gujarati.
'I'mprovement always begins with 'I'.
We have been born & brought up in a society which never bothered to pay Sales tax or VAT. Now, all of a sudden, a consumer will have to pay 28% GST on certain products, since GST evasion at a large scale will not be possible due to strict penalties.
Imagine a situation where one used to buy a product for INR 1000 without bothering to pay any Sales tax or VAT on the purchase. Now he will have to pay 1000 + 280 (GST @ 28% of 1000) = 1280. How many will be ready to buy a product for Rs 1280 instead of the earlier price of 1000? Your guess is as good as mine.
Someone may counter that earlier there were other taxes like excise etc for which a trader could not get input credit and now he will get input credit and hence goods would become cheaper. The situation was very different earlier. Goods were dispatched from factories without paying excise and VAT. Goods crossed many states' borders to reach a consumer without paying excise, VAT, octroi..... Even the consumer never bothered about a bill. So, how does the question of taking input credit arise when it was never paid in the first place? I fail to understand that.
I think the tax evasion will continue, though on a smaller scale than earlier. The basic issue is the five slabs of GST - 0, 5, 12, 18 & 28. The higher rates of 18 & 28% will encourage people to evade GST.
My view is that Modi, Jaitely, state finance ministers made a big mess of GST. There should have been only one rate of GST and that should have been something around 6% exempting some products. A lower tax rate of 6% would have encouraged everybody to pay GST. People would not have minded it. They would have got habituated to paying GST and next year the GST could have been increased to say 8%, and then to 10%.
When you talk, you are only repeating what you already know. But if you listen, you may learn something new!