So, with the midnight clock bangs, the GST Yug has been started in India.
Goods and Service Tax, one indirect tax for entire India, is the must for an hour concept. India, which is biggest market and emerging economy, should had to have easy tax system.
GST is all about ONE NATION ONE TAX, which shall ease the tax administration.
Administration has always been a task in the geographically and demographically diverse nation like us. India, therefore need the systems which shall be first, self maintaining and second easy to understand and implement. Income tax has been a complex web of provisions, the multiplicity and differentiating tax rates and tax systems itself in different states were two major headaches that Government needs to address.
GST has been in talk since quite some time. Congress Governement around 2005-10 took some serious inititives towards the same, and see, it took a decade thereafter, for its coming into reality.
GST law is not as simple as that of Service Tax, VAT, CST, as it has distribution of revenues inbuilt. However, it should be for the time being and once, people are used to the same, they should find it not complex as its looking now. The reason for some issues regarding the GST, is its implementation part and certain irregularities in deciding the tax rates.
For Consumers, who share the ultimate burden of the tax, the most important aspect is which items shall be chapeper and which items shall be expensive.Some items of daily consumptions have been expensive while others have been cheaper post GST rates. The cascading effect of higher input cost would also impact the output rates as compared now. The philosophy of fixing the rates has also not seem much clearer. Certain items falling in same prodcut catagory have become expensive while others become cheaper. Stationery for example, which has much common thing on the road for sale.
The GST is must and one or other day we needed to, and fortunately, we are possibly in 'Just In Time'. There are some irregularities, but dealing with it is a process. As PM said yesterday, we need some time to get along with our spectatles.
We would feel some pain, some things need to be changed from ourside, some things that we should get changed from the Government,but its a process, and we are lucky to be part of it when all it begins!
Harshad Mane | MahaUdyog