Archive for February 14, 2024

Some Concerns about GST …..

We are all quite aware about the rapid rate at which GST collections are rising . It certainly is a good sign . But, I have some issues which I feel need to be addressed
1… The entire working of GST collection is quite digitally managed . Now as we know, the MSME and rural businessmen have to face a huge challenge while complying with the strict time bound requirements of GST compliance due to being less organised and non e savvy culture yet . This leads to huge unclaimed credits of ITC which to my mind is UNDUE ENRICHMENT , which enriches the government coffers .

2… GST is an indirect Tax . It hits the rich and the poors equally . This is despite the basic intentions of the government, not to tax the poor . .
Even a person below the poverty lines lands up paying his share of GST on whatever little taxable goods or services that he spends on .
Keeping this in mind, should there not be a method to refund a fixed sum to the BPL people , based upon a reliable data about the average share of GST of a common BPL family ?