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Goods and Services Tax > Who does GST benefit?

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  • Joined:01-01-1970
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Posted: 09-12-2010

Intro



The much hyped GST is going to happen. But when is a big question. Much more important than that is, should we welcome it or not? Or rather who should welcome it and who should not? As a tax payer, where do we stand? Many of my friends who pay multiple taxes at multiple counters were expecting a sea change in the way GST might be working. Invariably, everyone had and continue to harbour great expectations of what GST might do to common business man. But then on close scrutiny, GST falls flat on its face and seems more a case of old wine and a new bottle; may be, I should say from the look of the discussion paper and further talk, GST is not made for the tax payer but for the tax collector. Increasing the revenue at the state and the centre seems to be the only target.



Expectations



The tax payer has every reason to expect that his task will be reduced. Over a period of time, every tax payer has been requesting the Government for the following:



1. 1. Red taping of the tax structures to be removed. This means decisions should be transparent, law should be transparent; the tax payer should know by reading the law without the help of a legal advisor, what is his commitment to Government. This means the law should be simple and straightforward.

2. 2. Accounting a business by itself is becoming more and more complex. It is only right that the tax payer expects the Government to reduce the accounting load on him. Governments of the past have always had the phenomenal liking to pass their accounting over heads to the tax payer. Even the minor works that are left out with the department are illegitimately executed by the tax payer or paid for by the tax payer as an extra.

3. 3. Every tax payer goes through at least three if not more different audits and reviews by different Government agencies. Income tax, Service tax, Sales tax, Excise audits, Customs and can you think of anything more. Please add. At least, three man years is frittered away every year in a mid size company for the sake of tax interactions. Not to speak of external consultants and the senior management time that is taken away in discussions and meetings on the topics. It is normal for the tax payer to expect a single window operation. Can it not be one single department that is to be interacted? Can it not be one single return that the tax payer has to file and that would take care of all the requirements of the Government?

4. 4. Last time when I walked into a tax collecting office, I had to meet the Assistant Commissioner. I do contribute reasonable sums of money to the exchequer. I had a discussion of about 30 minutes with him since he had to call someone else for sorting out my issue. All the 30 minutes I stood waiting. No chair was offered. Tax Payer in this country is the most ill-treated person. He contributes to their salary. He is the person who pays for all the expenses that the Government spends on. But on most occasions he is not given the treatment he deserves. Is it wrong to expect respect from people for whose expenses we pay?



Now is GST meeting any of them or does it meet any other issue at least.



Aim of GST



The Discussion paper gives us an idea on what was the impetus for bringing in the GST. It says GST tries to subsume most of the taxes that exist independently. Secondly, it integrates the goods and service taxes at both the levels, State and Central. Most importantly, the discussion paper highlights that GST would help in reducing
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  • gstkeeper1
  • Joined:13-07-2017
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Posted: 13-07-2017

Benefits of GST Bill implementation

  1. The tax structure will become simple and flexible after GST implementation
  2. GST can facilitate seamless transport of goods across different states and reduce the transaction costs of businesses.
  3. In the long run, the lower tax burden could translate into lower prices on goods for consumers.
  4. It can bring more transparency and better compliance.
  5. The number of departments (tax departments) will reduce which in turn may lead to less corruption
  6. More business entities will come under the tax system thus widening the tax base. This may lead to better and more tax revenue collections.
  7. Companies which are under unorganized sector will come under a tax regime.

know more about GST and its Rules and Regulations visit GSTKeeper.com
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