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  • Category: Miscellaneous

    "The Indian Goods and Services Taxes system is one of the most complex in the world."


    What do you feel about the GST system proposed by the Indian government. Share your knowledge on this.



    The World Bank report on the Indian Goods and Services Tax system says that it is one of the most complex in the world. Out of the sample of 115 Nations whose data is available to the World Bank, the tax rates in India are the second highest after Chile. India has the largest number of tax slabs when compared to the other countries. Presently we have 5%, 12%, 18%. and 28% slabs of GST on various items and services. Gold in India is taxed at 3%. Most of the countries have lesser number of tax slabs. 49 countries use only single rate of tax while 28 countries use two rates only. There are only five countries including India which use four rates.
    It is high time for the Government of India to take rigorous action to reduce the number of slabs and also a reduce the tax rates. One India, one tax is also not being implemented with petroleum and alcohol kept away from GST. The petroleum products need to be brought under GST immediately.
  • #631002
    The reasons of very high tax rates in India compared to other countries are as follows -

    1. A very small percentage of people pay taxes and the rest evade payment of taxes in collusion with the tax officials. Therefore, rates are kept higher to collect the same amount from lesser number of payers.

    2. More revenue is required to be collected for implementing appeasement policies in the name of social welfare e.g. Amma Canteens or distribution of free sarees or gadgets.

    3. Provision is required to be kept for siphoning of money by politicians in scams and payment of commissions, bribes or brokerages etc.

    Since, above mentioned provisions cannot be made overtly, the same has been made in a complex form named as GST.

    Let us encourage each other in sharing knowledge.

  • #631013
    May be the findings were right. The reason being, In India there is a habit of forgoing tax through under hand sales, that is without generating bill and thus many transactions go without the notice of government and yet money involved in those transactions were much. For example the scrap sales. The rusted iron pieces, the thrown out, work out iron metals and sheets do have good market in scrap market and those dealers never maintain record not pay taxes on their income. In fact Iron scrap business is called black gold business. So the government wants to get maximum from the honest tax payers and hence fixed higher tax percentage on many products. Though initially the tax structure was confusing, over the period of time many have come to the tax fold, thanks to cut in flow of cash currency at ATM's and insisting for digital payments.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #631019
    Many people in India try not to pay tax. So tax paying persons are odd men out. The government is not able to make any rules wherein people will pay definitely tax.so government is trying to exist by taking tax at higher rates so that they can manage the show.
    Another problem is government has to give subsidies and other benefits to the people to get their votes.
    All this put together the tax rates are higher when compared to other countries. If the people understand the importance of tax and once everybody starts paying then only the rates may come down.

    drrao
    always confident

  • #631043
    We can also make thing simple in our own country. Where there is will there is way.
    But who bothers? See the way Bills are passed in Parliament and legislature? There are not enough discussions and debates held.

    GST is more done in haste to please some others and not out of extreme necessity. The propaganda was much as if it is the panacea for all taxing woes. But in effect it is only a name changer and not a game changer.
    There is a saying in Malyalam " Aarkaanum vendi Okkaanikkal"( Vomiting for someone's sake').

    The ruling party and opposition see the GST in their on divided political lines.
    The real affected people are the trading and servicing community. The government should have held expansive and comprehensive discussion in combined sessions of Tax authorities and business people.That would have removed the implementation hiccups and difficulties and would have ushered in a better GST system.

    Even now the same can be done. But it will not happen.Both sides will use the same for elections purpose in their own way.

  • #631068
    Before introducing GST system Government has hyped its benefits to customer. They told lot of decrease of cost price of goods to customers. But practically we are not seeing any benefit out of GST actually we are seeing certain increase of price of some goods. In news media we are seeing, traders are not passing GST benefits to customers or traders evading GST tax pay to Government.

  • #631076
    Yes, it is one of the complex systems in the world created by Nehru and further complicated by his daughter and his grandson. The present Government is trying to simplify it. I believe that the effort will bear fruit in another three years or so.
    Beware! I question everything and everybody.

  • #631134
    The comparison should be on the basis of all round scenario. Means what we used to have & the changes being done currently. These are the improved methods for any economy. In context to our country there is still a vast gap between the rich & the poor. The government need to consider both. The same tax slab can't be possible in India at least in the mean time. We can't allow the poor to pay the equal amount of tax as is being paid by the rich so the slabs are justified.

    I appreciate the steps being taken by the current government so far.

    I have been to the taxes as I am also into looking after the commercial aspects in the various organizations. Can't this be appreciated that more then 18 different taxes have been eliminated by one. One nation one tax.


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