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Last updated: 14 Nov, 2017  

gst-THMB.jpg GST: Course correction

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Bikky Khosla | 14 Nov, 2017
In a big relief to India Inc, the GST Council  last week slashed tax rate on 178 items from 28 percent to 18 percent. Consumers will heave a sigh of relief as well. Now, only 50 items, classified as sin or luxury goods, are left in the highest tax slab. Earlier this month, Prime Minister Modi had given an indication of this move, saying that further steps would be taken to address the problems facing businesses and traders under the new tax regime, and finally some sweeping changes were approved by the Council last week. These decisions will take effect prospectively from November 15.

Rigours of compliance being faced by small and medium enterprises (SMEs) is definitely one of the major issues that gave GST a bad name, and to address it the Council has now decided to bring more such business units under the composition scheme, by cutting the tax rate allowed under it to 1 percent of turnover. Additionally, eligibility threshold for the scheme has been raised to Rs 1.5 crore from Rs 1 crore now. Definitely, these steps will give a much-needed relief to our small businesses, which have been suffering the brunt of the new tax regime.

There is little doubt that GST, introduced in July 1, began on the wrong foot. The early version was probably better than the indirect tax regime it replaced, but high tax rates and onerous compliance requirements made life extremely difficult particularly for SMEs, messing up their working capital cycles. In this backdrop, the new version of GST is welcome. The Union Finance Minister claimed the rate adjustment was part of an ongoing rationalisation exercise, while sceptics viewed that the move was driven by fear of a voter backlash, but either way, the Council has done a good job.

But there are still a lot of issues that need attention. GST was meant to ease the rules for businesses, but this objective is still far from being achieved. The GST network itself is a huge inconvenience. The filing process could be made user-friendly, there are glitches to address. Several decisions announced in October have not been implemented efficiently. A lot of works are yet to be done to widen the coverage, cut number of tax slabs and decrease rates. Most importantly, a climate of mistrust still exists, and the government must work on a war-footing to nip it in the bud.

I invite your opinions.
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GST subject to Plan Process and Continuous Review Mechanism
A.V. Chandran | Fri Nov 17 07:15:37 2017
GST: Course correction Plan process and continuous Review Mechanism are missing with reference to GST. GST levy could be divided into five categories viz. Essential Commodities closely related to Food, cloth and housing subject to 2% GST, Petroleum products subject to 5% GST, Share Market GST @ 10% for minus with profit only, Luxury items GST @ 15%, Liquor items GST @ 20%. All these GST rates could be reviewed at the time of Budget Revenue process or Plan Process @ 1% Growth. All the Five list of Categories could be developed with the joint efforts of intrastate, interstate and national Governments. GST Council may pool such list subject to befitting presentation before its scheduled meeting for review process and resolution thereof. Hard copy/ Soft copy of such Resolution could be made available for circulation to all concerned for its micro to macro application. GST sharing by Central shall be fixed 1/3rd of the applicable rate and State Governments could be based on precise formula like GST into Population of State divided by total population of the country into 2/3rd of GST % hence precise formula could be carried out by one and all states based on Total population of India and State Population. For instance Calculation of GST sharing of a state with 10 Crore population is calculated as under on 1/3rd and 2/3rd for Central and State Respectively: GST RATE Central State 2% 0.00666667 0.00102564 5% 0.01666667 0.0025641 10% 0.03333333 0.00512821 15% 0.05 0.00769231 20% 0.066

Tax slab
Percy Daruwalla | Thu Nov 16 10:20:30 2017
GST council has to go a long way they must decide the route of buisness and tax structure on the basis of B2B, B2C,B2Industry and rework the slab still IHC codes are not complete with IHC belgium this has left out lot of products like cooling tower parts are mentioned but now clubbed in 28% bracket the CT is costing Rs 20000 to 25 crores each and 28% will fleece the end customer like power plants etc , chemical plants and toss their budget Then definition of terms used in circulars must be given GST is not only for khakras but for many industrial products who generate revenue

GST : course correction
Gopinath B Kulkarni | Thu Nov 16 03:48:06 2017
Good decision from Govt.

Abhay kumar lenka | Wed Nov 15 09:10:58 2017
Dear Sir, it will be better if ONE return will be made every month and reconciliation must be attached for the succeeding return so that tax payer will rectify his return and communicate his purchser and seller to correct the return.

Textile Machinery spares& accessories gst rate
N.Natarajan, Ph.99944 92790 Past President: TextileMachinery | Wed Nov 15 06:53:19 2017
We are more disappointed the announcement in the 10th nov by the GST council, whereas we were paid tax only 5 % before GST, and now we in allthe slab in the GST(5, 12, 18 &28%) we have sent petitions the TN Govt& GST council chairman and its members and finally to the PM also. We are expecting the 5 % in GST, we hope still we are expecting.

GST-Glamour Strategy & Tactic to win election.
Sirsendu Banerjee | Wed Nov 15 06:48:33 2017
GST become an glamorous word of sales and marketing of given discount they wants to win drop out customers.. But past damage out of control..its implementation had no direction and discount management can't control the damage completely as business brain affected of so many SME.

GST-Glamour Strategy & Tactic to win election.
Sirsendu Banerjee | Wed Nov 15 06:46:58 2017
GST become an glamorous word of sales and marketing of given discount they wants to win drop out customers.. But past damage out of control..its implementation had no direction and discount management can't control the damage completely as business brain affected of so many SME.

GST: Course correction
Fred Fernandes | Wed Nov 15 06:17:30 2017
The goverment first beats you, then applies medicine on your wounds, and says, "see, I'm your friend". If youn see the new rules for non compliance, they are so stringent,only murderers were subject to this type. No reason for arrest, anytime raid, even at night. All governments do keep on making new laws to keep the public under their thumb. This government has gone even further.

GST: Course correction
S K Chattopadhyay | Wed Nov 15 05:10:30 2017
Good learning

vaibhav | Wed Nov 15 04:58:50 2017
is GST for security Service changed

Gst course correction
R k Bhandari Chandigarh | Wed Nov 15 03:55:08 2017
State is experimenting on gst which is one of the worst type if statute any law made either should be made only after consultation with stakeholders but not as dictatorial manners in democracy and here day to day changes affect the confidence of citizens it appears that state will definitely loose confidence of business houses which is backbone of its taxes Realise how many changes made since July 2017 till now in gst which list it's importance and significance Illiterate unqualified persons are filing tax returns and looting the businessmen and filing avoidable returns and registration loading the gstn

K.MURALI | Wed Nov 15 03:16:03 2017
Dear Friends., For our present Indian economy and present market condition SSI units tax limited should be fixed to 3.00 cr. ie means upto 3.00 cr turnover of the company their is no tax. just return has to file yearly once. then GST Should for all products and service units 5% uniformity. exemption for FOOD, MEDICINE, HOSPITAL SERVICE, FREIGHTS, ETC,,,,,,,,, Then only Indian economy will grow with in another 6 months, otherwise India should take loan from world Bank for industrial growth and economical growth. First thing India is developing country, so we have to do so many things for village developments, in EDUCATION, AGRICULTURE, EXPORTS, INFRASTRUCER DEVELOPMENTS, PRICE REDUCTION OF DAY TODAY USEAGE MAERIALS, TRANSPORT COST HAS TO COME DOWN, ETC,,,,,,,

GST: course correction
KG Vijayakumar | Wed Nov 15 02:48:36 2017
The most GST utilities are computer based, which difficult to understand for a common man or small business persons. Hope gradually will adapt to the changes.

Mohamed Iqbal | Wed Nov 15 01:45:18 2017
Reverse credit should be withdrawn completely

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