Understanding GST by a common man

Free Thinker *

These days we find GST everywhere like Pokémon Go; we come across reports, news, articles, interviews and editorials on GST in the media. But a common man like me does not comprehend what they are talking about. First they talk about a cap; we know cap is a kind of hat. They make things more complicated when they say, cap should be 18 or 19 or 20 or 21 so on and so forth. I think one cap is more than enough; I also have only one cap, rather a monkey – cap.

A senior party leader with a parti pris reacted, "now GST is past (passed), so we have to think of fixture (future), it is the best for the nation, now one counsel (council) will make it functional". I could not control myself and asked him, 'brother what is the full form of GST'? He retorted with a smile 'Global System of Taxation'. To some extent he was right; nearly 160 countries have so far adopted the GST.

Taking a cue from this, I instigated one reporter friend to ask the same question to the people on the streets. One gentleman replied, 'GST is nothing but the name of a masala brand (perhaps he is confused with MDS). A lady said, it is 'Grocery Sales Tax'. One student responded as 'General Service for Taxi'. One girl said, 'Gujarat State Transport'.

Yesterday I met a Jt. CEO of a Petroleum Company in the park; I simply asked him, what do you think of GST? He replied with a broad smile, "I don't know, but we are trying to locate it, we are not sure whether we are actually in or out".

Listening to his reply I am further confused. One stranger hearing the conversation intervened, definitely liquor is included. Petroleum is left to the mercy of the States. Power too is left with the States. That means Centre has no power. It is not like that only 3 or 4 items are with the State.

Economists are saying that GST is favorable for the country. They maintain that it will certainly push the GDP up by 1 % to 1.5%. They also say that the good results will be visible only after 2/3 years and it will be inflationary with immediate effect. I believe them. But I really don't understand the actual link between the economic growth and the beggars, BPL families, poor farmers and street venders.

Many claim that the country has a growth rate of above 7% and a huge Foreign Exchange Reserves to the tune of US $ 363 billion. It is really great to hear all these positive things. However at the ground level things have not changed much. We have been listening of poverty alleviation since 1970's and still we are struggling to remove poverty.

Today the first goal of Sustainable Development Goals (SDP) is poverty alleviation. The date-line for finishing poverty as per SDG is 2030. How long poverty will remain in our agenda?

The nagging issue is whether our promising growth, our comfortable Forex reserves, non-stop FDI flow, is actually helping the lowest strata of people? I have been seeing a beggar for the last 20 years, he is still a beggar; I have been buying vegetable from the same vender, there is hardly any improvement in his life; I have been talking to my regular barber, there is no visible change in life except grumbling about his incurring expenditure on mobile phones, cable- TV etc.

Some experts calculate that the manufacturing and producing states will loss revenue. That is why TN is not very happy about it. They console themselves with the hope that they would be compensated at least for five years. No one knows what will happen after 5 years.

But the issue is, what about other states; are they not producing or manufacturing? UP is still the most producing state. Manipur is number one in manufacturing local rice- brew. As far as flood production is concerned no state can bit the land of Ahoms as long as Brahmaputra is not effectively blocked by the neighboring country.

One constitutional expert whispered in my left ear that, "don't be so exuberant about this GST dispensation, the federal structure is going to be compromised in name of collective & comprehensive taxation and revenue sharing; apparently the States will have a say in the GST Council/Parliament but practically and ultimately they have no say, because the Centre has the veto power to decide everything on its own; the Centre will have the last laugh".

I am not ready to buy his argument because it goes against the spirit of universalization. The world is globalizing slowly and steadily. There may be some aberrations here and there. UK will come back in EU. Complete globalization may take few hundred years. Technology will certainly play a crucial role in the process.

Finally if you can make out the head or tail of GST you will be representing the State in the GST Parliament. You will be one among equals.

You will be a king among the kings. Every king will have a single voting right. Be happy now you will be treated as equals.

Forget about the taxing issues. Enjoy the status. You are equal to UP or TN or AP. It should be GST Parliament like the EU Parliament. I know for sure that they would call it 'Council' not 'Parliament'. But till then enjoy the euphoria of being a member of a Parliament where you have the same right and strength as others do. I love GST as it gives a kick for equality and equity.