<h1>&nbsp;GST</h1><span><a href="https://www.blogger.com/blog/post/edit/6591743149208750491/5760606919474155379#" target="" rel=""><b><img width="475" alt="" src="https://1.bp.blogspot.com/-laZnpXUGokM/X2eIqMRhsjI/AAAAAAAABSg/yh7t_f5vOJ8qx0Tdwpi699PqtY8VQ9i6gCLcBGAsYHQ/w475-h297/GST.jpg" height="297" title="Image: https://1.bp.blogspot.com/-laZnpXUGokM/X2eIqMRhsjI/AAAAAAAABSg/yh7t_f5vOJ8qx0Tdwpi699PqtY8VQ9i6gCLcBGAsYHQ/w475-h297/GST.jpg"></b></a><b>GST</b></span><div><b><br><br></b></div><div><b>The Goods &amp; Service Tax. The uniformed Indirect Tax on services &amp; goods that are being charged on every stage of production, but is meant to be refunded to all parties on various stages leaving only final consumption.</b></div><div><b><br></b></div><div><b>That is the main feature of GST as it's being charged at the time of consumption, not like it's predecessors, where it gets charged at the time of origin.</b></div><div><b><br></b></div><div><b>GST has been considered as a revolution, the second liberalization after 1991 reforms &amp; The New Freedom for the country after 1947.</b></div><div><b><br></b></div><div><b>However, this newly found Liberty is not away from criticism despite all efforts of the Central Government to celebrate its success.&nbsp;</b></div><div><b><br></b></div><div><b>Reduction in collection &amp; Centre - State conflict are also other factors that not only put a question mark over the whole concept but a serious hit on India's federal system.</b></div><div><b><br></b></div><div><h3>GST</h3></div><b>The Origin</b><div><b>Although the work started in 1986 under Rajiv Gandhi's government by the Finance Minister Vishwanath Pratap Singh for a common Tax to uniform the complex Tax System. It was further taken by Narsimharao &amp; his FM Manmohan Singh when the discussions began for a Value Added Tax post-liberal Indian Economy.&nbsp;</b></div><div><b><br></b></div><div><b>But it was 1999 when then PM Atal Bihari Vajpayee constituted a committee under then West Bengal Finance Minister Asim Dasgupta to design a GST model.&nbsp;</b></div><div><b><br></b></div><div><b>When in 2004, Vajpayee Government voted out &amp; UPA came into power,&nbsp; then FM P. Chidambaram made no changes &amp; process went on until in 2011 when Government changed in WB after defeating of Left Front &amp; Mr.Dasgupta resigned as Chairperson of Committee. Around the same time he claimed that 80% of work was already done.&nbsp;</b></div><div><b><br></b></div><div><b>22 March 2011 was the day when in Parliament Government proposed 115th Constitution Amendment Bill to introduce GST into the system. But the bill received strong opposition from BJP &amp; finally, it went to the Yashwant Sinha led Standing Committee. The committee submitted its report in August 2013.</b></div><div><b><br></b></div><div><b>Here an interesting point to be noted that it received the largest opposition from the Gujrat CM NARENDER MODI. In fact, then Rural Development Minister Jairam Ramesh stated, "The attribution of failure of GST bill is single-handed to Mr. Modi.</b></div><div><b><br></b></div><div><b>Then in May 2014, a new Government elected under Mr.Modi in the 16th Lok Sabha. Then the same man led the Government to approve the bill in committee &amp; reintroduced it in Parliament. The deadline that got set for Its implementation, was April 1, 2017.</b></div><div><b><br></b></div><div><b><br></b></div><div><b>The New Liberty</b></div><div><b><br></b></div><div><b><br></b></div><span><b><img width="436" alt="" src="https://1.bp.blogspot.com/-rWl7YkufNeI/X2eYB_Q1hgI/AAAAAAAABS4/AZRW94AcsIQV4UhtEHWRQApsaOa4XiHRACLcBGAsYHQ/w436-h297/GST.jpg" height="297" title="Image: https://1.bp.blogspot.com/-rWl7YkufNeI/X2eYB_Q1hgI/AAAAAAAABS4/AZRW94AcsIQV4UhtEHWRQApsaOa4XiHRACLcBGAsYHQ/w436-h297/GST.jpg"></b><b>GST</b></span><b><br><br>Then in the midnight of 17 July 2017, the Parliament enlightened &amp; in this midnight session where both houses were convened in the Central Hall, GST implemented throughout the country.&nbsp;</b><div><b><br></b></div><div><b>The ceremony was boycotted by major opposition parties including Congress, TMC, Left &amp; others as they labeled is same&nbsp;as the then current system.&nbsp;</b></div><div><div><b><br></b></div><div><h3>GST</h3></div><div><b><br></b></div><div><b>The Slabs</b></div><div><b><br></b></div><span><a href="https://www.blogger.com/blog/post/edit/6591743149208750491/5760606919474155379#" target="" rel=""><b><img width="497" alt="" src="https://1.bp.blogspot.com/-o3EiorAsgb0/X2ejVIbHT3I/AAAAAAAABTY/bUd3-goqZoALhZWKF-svvMSPx8qqBccZACLcBGAsYHQ/w497-h269/GST.jpg" height="269" title="Image: https://1.bp.blogspot.com/-o3EiorAsgb0/X2ejVIbHT3I/AAAAAAAABTY/bUd3-goqZoALhZWKF-svvMSPx8qqBccZACLcBGAsYHQ/w497-h269/GST.jpg"></b></a><b>GST</b></span><div><b><br><br></b></div><div><b>GST constitutes 5 slabs - 0%, 5%, 12%, 18% &amp; 28%. It is noted that Goods like Alchohol, Petroleum, Electricity are kept out of GST.&nbsp;</b></div><div><b><br></b></div><div><b>Some other goods like precious stones are charged at 0.25% &amp; Gold at 3%.</b></div><div><b><br></b></div><div><b>There's another 22% Cess is charged on already assessed&nbsp; 28% Tax over Tobacco, Luxury Cars etc.&nbsp;</b></div><div><b><br></b></div><div><b><br></b></div><div><b>Is It Good Or Bad??</b></div><div><b><br></b></div><div><b><br></b></div><span><a href="https://www.blogger.com/blog/post/edit/6591743149208750491/5760606919474155379#" target="" rel=""><b><img width="364" alt="" src="https://1.bp.blogspot.com/--aKKfBA3U_E/X2eo_xmHagI/AAAAAAAABTw/TNjxutY1HHUy4NWIrygZj3ull68ImrKzwCLcBGAsYHQ/w364-h364/GST.jpg" height="364" title="Image: https://1.bp.blogspot.com/--aKKfBA3U_E/X2eo_xmHagI/AAAAAAAABTw/TNjxutY1HHUy4NWIrygZj3ull68ImrKzwCLcBGAsYHQ/w364-h364/GST.jpg"></b></a><b>GST</b></span><div><b><br><br></b></div><div><b>Hailed as the biggest reform, the GST system no doubt brought revolutionary changes in Indian Taxation &amp; in the Economy as a whole. &amp; it also brings a debate about the Pros &amp; Cons it claims to contain.&nbsp;</b></div><div><b><br></b></div><div><b>Let's discuss the impact it put on us point by point. Let's start with the claimed benefits.&nbsp; &nbsp;</b></div><div><b><br></b></div><div><b><br></b></div><div><b>Pros -&nbsp;</b></div><div><b><br></b></div><div><b>1. It is said that GST has a cascading effect on Tax. As it brings all Taxes under one umbrella, it is said to have a reduced amount of Tax.</b></div><div><b><br></b></div><div><b>2. Small industries can benefit from taking benefits of the Composition Scheme.&nbsp; It is designed to reduce the burden on small enterprises.&nbsp;</b></div><div><b><br></b></div><div><b>3. The entire system of GST is online &amp; considered it easy to operate even for new users.&nbsp;</b></div><div><b><br></b></div><div><b>4. In many states earlier, VAT was liable to pay at a turnover of 5 Lac. Now the threshold has been increased to 20 Lac &amp; provides benefits to small enterprises.</b></div><div><b><br></b></div><div><b>In all, it seems like a real revolution to benefit businesses for smooth running &amp; reduced burden.</b></div><div><b>Then where the problem lies? Let's check them too.</b></div><div><b>&nbsp;</b></div><h3>GST</h3><div><b><br></b></div><div><b>Cons -&nbsp;</b></div><div><b><br></b></div><div><b>1. The first problem that arose when the system got introduced was to purchase GST software &amp; related products. Although it is a basic requirement, it actually increased the cost of running businesses.</b></div><div><b><br></b></div><div><b>2. The adaption of online receipt by small &amp; medium enterprises is actually a real challenge in the most informal economy of India.</b></div><div><b><br></b></div><div><b>3. Another big challenge is with the filing process where a small mistake can lead not even to issues with the return filling process but also make a way for further scrutiny by the Tax Department.</b></div><div><b><br></b></div><div><b>4. It is considered that refunds are actually a pain in the neck process &amp; consume a lot of time.</b></div><div><b><br></b></div><div><b><br></b></div><div><b><br></b></div></div><div><b>GST IN INDIA</b></div><div><b><br></b></div><div><b>The World Bank has considered the Indian GST system very Complex.&nbsp; The rates are confusing, get changed dramatically since inception &amp; above all reduction in collection year by year &amp; COVID Pandemic has led to another dramatic situation.&nbsp; Post-Lockdown Economy faces challenges hence Tax collection also decreased as the chart below depicts:-</b></div><div><b><br></b></div><div><span><a href="https://www.blogger.com/blog/post/edit/6591743149208750491/5760606919474155379#" target="" rel=""><b><img width="429" alt="" src="https://1.bp.blogspot.com/-M2ge0IpzVL0/X2e1G-dqgRI/AAAAAAAABUI/Wivg_-WFEecU2Sn4N7pA0vklbVYHMrXvQCLcBGAsYHQ/w429-h291/GST.png" height="291" title="Image: https://1.bp.blogspot.com/-M2ge0IpzVL0/X2e1G-dqgRI/AAAAAAAABUI/Wivg_-WFEecU2Sn4N7pA0vklbVYHMrXvQCLcBGAsYHQ/w429-h291/GST.png"></b></a><h3>GST</h3></span><b><br></b></div><div><b><span>CENTRE VS STATES SHOWDOWN<br></span><br></b></div><div><b>The projected Tax revenues &amp; Collected GST is 3 Lac Crore. A GST Compensation Cess is charged to bridge the gap, however, it only received 65k Crore. That means the remaining gap is 2.35 Lac Crore.</b></div><div><b><br></b></div><div><b><br></b></div><div><span><a href="https://www.blogger.com/blog/post/edit/6591743149208750491/5760606919474155379#" target="" rel=""><b><img width="414" alt="" src="https://1.bp.blogspot.com/-Fa3qJ9NYGaA/X2e6cK0h9gI/AAAAAAAABUg/lTmJT0M-k4YAX1RrpeNfDFI-YjTyJTzJwCLcBGAsYHQ/w414-h446/GST.jpg" height="446" title="Image: https://1.bp.blogspot.com/-Fa3qJ9NYGaA/X2e6cK0h9gI/AAAAAAAABUg/lTmJT0M-k4YAX1RrpeNfDFI-YjTyJTzJwCLcBGAsYHQ/w414-h446/GST.jpg"></b></a><b>GST</b></span><b><br><br></b></div><div><b><br></b></div><div><b>After calling this problem "An Act Of God" Finance Minister Ms. Sitaraman complicated the situation by not considering GST shortfall a problem</b></div><div><b><br></b></div><div><b>According to many State CMs,&nbsp; instead of providing financial assistance to the States, the center is asking states to make money in form of a loan, &amp; here is what a confrontation has begun with the demand of states &amp; led to put a big question mark on GST &amp; Federal System of India as a whole.</b></div><div><b><br></b></div><div><b>We hope soon our Honorable Leaders will address the situation &amp; put this Stand-Off to an end.</b></div><div><b><br></b></div><div><b><br></b></div><div><b>Conclusion</b></div><div><b>The pandemic, Slowing Economy &amp; other challenges. The road does not seem easy ahead. But we have to get through it &amp; Government should take examples of other Countries who have successfully faced challenges &amp; took the lead.</b></div>

GST - Pros & Cons Of The Second Liberation Of India

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