Tag Archive for GST

admin | February 14, 2024
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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 ?

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admin | July 20, 2023
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Middle class in middle of GST

It is the fact, worth being proud of, that the collection of GST in India is consistently crossing the expected levels. In fact, it is being looked upon as a major source of funds for the economy.

But the fact remains that it is an indirect tax. It hits each one of us. A toothpaste bought by a common man will have the same element of GST as the GST element which the richest individual will bear. This causes an area of concern.

I wonder as to whether there can be any method by which the lower middle class and poor people can be refunded the GST which they have to bear. In fact, they belong to a class which is not intended to be taxed and even income tax is also not levied on them.

If one goes to a developed country, they have the system of returning the VAT which a tourist had to pay during his stay in that country by producing the vouchers at the departure hall at the airport.

I am sure that with a commendable spread of digitization, it is not a task which is impossible to administer provided there is a will to do so.

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