The impact of GST is now visible, which has been implemented with haste and half-finished preparations. Companies, market, and business couldn’t even overcome from the shock of demonetisation, they got another heavy blow in the name of GST. This makes the market gasping and there has been a huge decline in the manufacturing.
Most of the big and reputed firms have to shut down the manufacturing or have to slow down the production. The worst impact is on companies that manufacture consumer goods and consumer durables. GST shook the sentiments of the market across the country.
Why did this happen? To understand this, let’s take a look at government claims. Under GST, there will be a one tax law in India. The law will be so simple that businessmen and citizens will end the hassles of the tax office, inspector, CA etc. 132 million people across India will be able to get transparency of a rate of taxation. But has all this happened? And the answer is- NO.
Two and a half months passed since GST has been implemented, but even today, there is talk going on about GST. The bottom line is that this is a very complicated matter. We do not understand, what we should do? On the other hand, our Prime Minister Modi Ji has taken a new posture with GST. They are saying, Brothers and sisters … Goods and Simple Taxes means GST.
From July 1 2017, GST i.e. Goods and Service Tax has been applied across the nation. Goods and service tax has been applied for two and a half months, but nobody understood anything. Four slabs of 5%, 12%, 18% and 28% have been made in GST. Most of the people do not understand what to do with the slab?
Remember, what Prime Minister and other ministers said while making us count the benefits and advantages of GST. With the consummate of 17 transaction tax and 23 cesses, only one tax GST has been implemented. After this, only one return has to be filed. With the introduction of GST, inflation will be reduced and the problem of complex tax and tax returns will also end for people.
The specialty of GST is that the tax will not be imposed on tax and no crowd of trucks will be there on the taxpayers and toll across, in the country. With it, stealing of tax will become difficult and country’s GDP will also increase. Does this happen? Surely not.
In the history of independent India, the decision is so unimaginable, where manuals, rules, and regulations are not ready. The software is not ready, neither the businessman has understood nor his professional helpers, accountant, and CA have understood, what are the rules, how to fill a form, how to give bills to the buyers, etc and etc.
But PM Modi and authorities, through media, employees and other officials created the fear among the public, that if they won’t follow or comply with orders they have to pay fines and can also go to jail. But the businessmen of this country are also players, they have given a shock to the government. As the traders have claimed to return nearly 68% of the GST they paid in the month of July.
In July, tax collection of Rs 95,000 crore was made under GST, out of which nearly Rs 65,000 crore was claimed to be refunded. The Finance Minister loses his senses due to the claim. Ministry has already started the investigation, along with, tax officials have also ordered to investigate into the matter.
The government says that GST is one nation, one tax, which is a very misleading slogan. In the world, GST’s standard rate is in between 5 to 17 percent in developing countries, then why it is 28 percent in India? Petroleum products, alcohol, and real estate are out of the bounds of GST, then how it can be one nation, one tax?
Taxes of Central and State Governments have not been able to get one under GST. Some tax is still be levied by the state government. For example- Governments are free to impose Vat on Petrol-Diesel, excise on Alcohol-liquor and Entertainment Tax on movie tickets. And this is the reason of high price of petrol and diesel.
Every now and then, in the meeting of GST council, the government is increasing or decreasing price of the commodities. This is the biggest reason for confusion. Businessmen are unable to understand, that what is happening? What they have to do? Even higher authorities and government officials are entangled in the complexities of the GST. They are confused themselves, then how they will remove the confusion of businessmen.
Complications and confusion are so high, that the GST Council has met 18 times and due to more than two dozens of the decision, the tax has been reduced on 1211 items of fixed taxes many times.
GST has been introduced as a package to increase GDP, employment and remove poverty. But the government haven’t told that what is the basis of saying so and where in the world it has happened. The issue has also been made on why there is a delay in applying GST in India.
But those who are saying all this, are not telling that in Australia the discussion about GST had started in 1995 but was implemented in 2000. The GST, which our ministers are saying is historic, it was first implemented in France in 1954. In April this year, Malaysia has also implemented GST. New Zealand’s GST is considered to be the best in the world, it came into force in 1986.
In 1991, GST has been implemented in Canada and South Africa. Over 140 countries have implemented GST. There is no GST in America. But countries around the world have implemented GST with full preparation, not in a hurry like we did. Nonetheless, whether Modi believes it or not, but economists believe that the country’s economy will take a long time to recover from impact demonetisation and then GST.
