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been withdrawn.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.
