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Tuesday, October 10, 2017

Efforts to tax reform bowed before voters

By on Tuesday, October 10, 2017

Whether it was a failure of strategy; or failure of implementation; or failure of hurry; or failure of public faith


It was a boom in tax reform of Indian history 3 months ago when it was imposed midnight of 1st July 2017. The logic behind this implementing taxation was that the  development rate  would accelerate forward; the government income would increase; the price hike would be controlled.
The concept behind it before implementing was that the BJP leaders were assuming that the maximum business were out from the tax range which can be achieved after the least concession and would be rectified by the hard GST
The GST, abiding three months time, stood by head leaving all the provisions of basic reform. To assess the causes is not a tough task because the vote base is the need of the time than tax base. The government was so vulnerable that it implemented those changes in GST which had no need. GST is now handicapped, moreover high taxes whatever chief reforms were implemented has been withdrawn.
In the 22nd meet, the GST council implemented two main change – first,the composition scheme under GST has been enhanced time limit; second, the monthly base reform has been revised and implemented on quarterly tax return for the business of Rs 1.5 crore.
The monthly return was the base of GST, by it the bills of business had to be matched. The tax pilfering was to be scrutinized. The businessmen had to be compelled to abide to do their business on reality and bills, and input tax credit was to be paid regularly.
The 90% of businesses are now out of monthly return monitoring scanner after quarterly filing implementation again came enforce as earlier; mere 10% big businessmen will submit their monthly return. It is not to be surprising that the 10% big businessmen will even be relaxed from the filing of monthly return. as if their suppliers file quarterly return, the monthly filing of these businessmen will be impractical.
The regular input tax credit appears hard to be paid, which was important to slash the input cost of business.
Even other GST provision including E-waybill has been set aside for long term, which was important for the business transparency.
At least once in a year  the tax rate was used to revise . The GST council has changed the tax rate on goods and service three times in three months and there will be kept on changing in the wake of election pressure. Here’s a big uncertainty in tax rate now.
Here the treasury of Union and State governments both may face revenue crisis in the disturbance of quarterly return, composition scheme, and tax rates.
Which hardship it was changed in -- All the provisions to bring it had been prepared exactly 3 months ago for the GST? It was advised to government then there should be talked these provisions to industries and business and there were need of more time to prepare this tax provisions, as other countries had followed before implementing it.
Why was date of 1st July determined to implement the GST? While it could have implemented it till September 15 with all the preparation. It could have achieved more time to prepare a gateway to the businessmen in the new tax reform system and to correct the software of GST. Who is responsible for the damage incur within 3 months to the economy of country?
It was well known that GST was not tested and it has no  satisfactory beginning in spite of this, 90% businessmen were brought in this range whose digital literacy are weak.
What the affect had gone over the industries and business by implementing GST was most probable to affect over the economy of country
Why did not gave the priority to reform under tax structure of VAT and excise by the Union Government before implementing the GST?
Why the inclusion of petrol and diesel in the range of GST was rejected during 3 months when its formation was going on, which is now infused in the knowledge.

GST was a big and important reform, which earlier in hurry and later in fear of election -- the government has lost. There is no reform in the 3 months of GST journey – mere remaining of this revolution is! the tax which is more than earlier on service and goods.

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