Goods and Service tax (GST) indeed was a very good theme for a convenient corruption-free regime. But instead of being Good and Simple as publicized by central government, faulty provisions and wrong implementation has made an adverse reaction resulting in cheating, corruption and black money.
Provision of taking back credit of GST under exorbitant GST-rates has resulted in sale of GST-bills (without goods) for purpose of taking back credit making everyone involved in the corrupt practice feel real happy days. Genuine customers actually buying goods are happy because they do not have to pay GST on purchases made without invoice. Shopkeepers are happy because they find opportunity to sell GST-invoices saved by them without giving invoice to actual buyers. Those purchasing GST-invoices without making actual purchase are happy because they claim back GST levied in GST-invoices purchased by them without actually making purchases.
Best is to make GST-rates rational and minimal at say 0, 10, 20, 50 and multiples of 100 (without cess) on net paid sale-price rather than levying extra on sale-price. Presently many retailers cheat consumers by charging GST extra on Maximum-Retail-Price (MRP). Provision of claiming GST already paid in purchase-invoices then can be withdrawn by providing only net payable price on invoices rather than printing GST separately on invoices. Suggested increase in minimum tax-slab from 5 to 10 percent on limited commodities will pave way for heavy decrease in tax-slabs of 12, 18 and 28 percent to 10 and 20 percent on majority commodities.
Follow this link to join our WhatsApp group: Join Now
Be Part of Quality Journalism |
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast. |
| ACT NOW |
| MONTHLY | Rs 100 |  |
| YEARLY | Rs 1000 | |
| LIFETIME | Rs 10000 | |
