I thought GST was single point. This guy says there will three points/agencies. It all appears very confusing. In the present system, there is huge Tax evasion as many companies bill from the manufacturing source on 2% CST and leave it to the tradeers in different states to charge VAT. This is where evasion takes place. Our Trader friends from Rajasthan are masters at it. With complicity of state Revenue authorities of course.
Why not just read this article and analyse rather than just calling him a Congress supporter which he doesn't seem to be. The article mentions three different GST's which itself is disastrous. This does not mean that there should not be GST.
Re: Why not analyse this article.
by Vijay Sahani on Nov 30, 2015 01:05 PM
3 or even 2 GST would be a disaster. The purpose of "ease of doing business" gets defeated with 3 assessments.
I have worked for the Planning Commission at New Delhi before my retirement. Recently I had been to Canada on a personal trip. Incidentally I had an opportunity to be in a dinner party where several working officials from Canada Federal Tax were also there and many were even from the Indian origin. I raised the matter of GST to be introduced in India and its advantages as being told to us by different media. They actually laughed at that and said, " It would rather work the other way as India has perhaps one of the largest set of small shops working throughout the country and there would not be any record for actual sales. How the government is going to increase its revenue. The GST system works only if the sales and transactions are recorded through computer net work to be under seal like electric meters. Otherwise it is prone to high misuse and consumers will be though charged but government will not get anything as there would be no record of sales and receipts. Most of the purchases are in cash form in India unlike Canada/US where people prefer to pay through plastic cards and money transaction is anyway recorded. Even Canada is also already facing the problem because of GST and tax officials are trying to set the system right. But so far they are not successful for the past several years." PM Modiji, I feel is being advised wrongly by his advisers and should rather not pursue too much on this. Afterall the country has been running smoothly without this GST al
Re: GST in India is not going to work and rather disadvantageous
by Vijay Sahani on Nov 30, 2015 01:03 PM
Many small shops deal in cash and are not paying any tax even today. GST may neither improve nor damage the small shop owners tax compliance BUT GST will improve compliance and reduce inefficiencies especially when inter state transactions are done. Tax collections will indeed go up though it's true the general public will bear the brunt ultimately. GST is a mixed bag but it will be an improvement over the current system in the long run.
I have worked for the Planning Commission at New Delhi before my retirement. Recently I had been to Canada on a personal trip. Incidentally I had an opportunity to be in a dinner party where several working officials from Canada Federal Tax were also there and many were even from the Indian origin. I raised the matter of GST to be introduced in India and its advantages as being told to us by different media. They actually laughed at that and said, " It would rather work the other way as India has perhaps one of the largest set of small shops working throughout the country and there would not be any record for actual sales. How the government is going to increase its revenue. The GST system works only if the sales and transactions are recorded through computer net work to be under seal like electric meters. Otherwise it is prone to high misuse and consumers will be though charged but government will not get anything as there would be no record of sales and receipts. Most of the purchases are in cash form in India unlike Canada/US where people prefer to pay through plastic cards and money transaction is anyway recorded. Even Canada is also already facing the problem because of GST and tax officials are trying to set the system right. But so far they are not successful for the past several years." PM Modiji, I feel is being advised wrongly by his advisers and should rather not pursue too much on this. Afterall the country has been running smoothly without this GST al
People like Venkatesh is talking Bullshit. When hole of india is having a currency as rupee, then why to have different taxes for diff states. Let it be common through out india. then NO ENTRY TAX, no OCTRAI, NO NEED TO STOP THE VEHICLES TO GIVEN MONEY TO HAFTA COLLECTORS AT STATE ENTRY POINTS. VEHICLES CAN MOVE FREELY IN INDIA. NO PERMIT SYSTEM. VENTAKESH IS ONLY HIGHLIGHTING THE TELEPHONE BILLS SERVICE TAX RISE. IN OTHER CASES, THE TAX WILL GO DOWN.
EUROPE HAS LEART TO HAVE A COMMON CURRENCY AS EURO AFTER WASTING LOT OF TIME.
People like Venkatesh is talking Bullshit. When hole of india is having a currency as rupee, then why to have different taxes for diff states. Let it be common through out india. then NO ENTRY TAX, no OCTRAI, NO NEED TO STOP THE VEHICLES TO GIVEN MONEY TO HAFTA COLLECTORS AT STATE ENTRY POINTS. VEHICLES CAN MOVE FREELY IN INDIA. NO PERMIT SYSTEM. VENTAKESH IS ONLY HIGHLIGHTING THE TELEPHONE BILLS SERVICE TAX RISE. IN OTHER CASES, THE TAX WILL GO DOWN.
EUROPE HAS LEART TO HAVE A COMMON CURRENCY AS EURO AFTER WASTING LOT OF TIME.
