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  • Category: Miscellaneous

    Sweet outcomes of GST implementation

    In the pre GST regime in our country, there were many taxes like excise duty, sales tax, service tax etc but due to poor governance and lack of digital and online vigilance many people did not bother to file those taxes and continued selling the goods without any receipt or voucher.

    At that time the practice of ignoring the tax laws was so rampant that like other stores, my neighbouring provision store also did the same thing by bringing the merchandise without tax and selling them without any tax invoicing.

    Things changed drastically after the GST implementation, as the shops having high sales were afraid of the new system where catching them by authorities was an easier job so under compulsion as well as availing the input GST deduction they opted quickly for GST and took GST number and started invoicing the sales as well as depositing the GST in the Govt account.

    This is a brilliant example of governance achieved through digital and online methods and Govt will be getting increasing GST revenues with time.

    Many consumers are also benefitted by this. For example earlier the provision store was selling me an item for Rs 60 without any tax invoicing. Now also he is charging me Rs 60 but as GST on most of the common and daily use items is very low, he is depositing about Rs 2 only out of that as GST. So now he is practically getting only Rs 58 from me but keeping quiet about this. Earlier he was pocketing this Rs 2.

    Now Govt is going to reduce GST on many items further down and only on luxury and sin items it will remain as 28%. So this will benefit the customer as well as increase the GST compliance.

    Today when I read this news item that Govt is thinking to reduce GST further on some items, I thought let me share my views here so that we can get more comments and opinions on this.
  • #655156
    A good briefing by the author on GST here with some practical facts around.

    To provide with few more light it would be good to consider this concept with an example & therefore as a businessman would you prefer to indulge in the rules & regulations wherein you will have to deal with eighteen different types of taxes with the different states being carried away with the different Way Bills too? For sure you are intended for the business expansions but at the same time you don't want to get involved in so many complications & this is where the GST is gaining importance. With the GST being in existence we got one tax instead of eighteen different types of taxes & in addition we are required to generate Way Bills or the Road Permits for any consignments exceeding Rs. 50,000/- & the same can be generated through one site only instead of using more than dozen of the sites which was the case earlier.

    This is quite the fascinating aspect of the GST that if "A" has dispatched the material than this will remain open till the same gets received on the other end with the same quantity & with the same value & any differences will get the attention of the GST officer.

    There are many more benefits which can be drawn from this GST regime because for example the overseas investors are also attracted to invest in our nation because of this & this is what we often referred to the improved ranking of India in ease of doing business.

    Because of few of the politicians that this perception has been created that the GST has damaged the economy with many left unemployed but than I would like to tell all of them myself too is working in a private organization & is doing good. Even many of the small organizations have also came into existence during this phase with more transparent transactions on their account.

  • #655158
    #655156:
    Nice points brought out. Thanks for supplementing so many things to what I wanted to bring out in this thread.

    Knowledge is power.

  • #655169
    GST has made the total procedures simple. No separate waybill. Earlier days when the material is getting transported from one State to other State, they have to carry different waybills. There are many check posts and verification and so on and so forth. But with GST there are no separate waybills. Throughout India, the same waybill will be valid. The waybill can be generated online. This process has become simple to business people also. This has made a way to get more revenue. PM yesterday announced that more than 90% of the commodities will come under the slabs of less than 18% tax bracket. If this happens a common has to pay less tax for many of the items required for his day to day life. Only luxury items may come under higher than 18% tax.
    Many of the business people are happy with this system and many people are coming forward to submit their returns unlike in the earlier tax system which is very cumbersome.

    drrao
    always confident

  • #655199
    Govt has implemented the GST in a nice way and it has removed the hassles of so many taxes.

    I remember there used to be an octroi tax when you enter the city limits with a package in your hand purchased from outside and it was a cumbersome thing for all of us. Now it is removed.

    Thoughts exchanged is knowledge gained.


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