TODAY -

What is virtual reality of GST?

Free Thinker *

Goods and Services Tax (GST) launched on July 01 2017
Goods and Services Tax (GST) launched on July 01 2017 :: Pix - TSE



I thought GST stands for Goods and Services Tax. Honorable Finance Minister says the same; it is Goods and Services Tax. Around midnight of 30th June, our Honorable Prime Minister has clarified that it is Good and Simple Tax. Once the PM has made it clear the matter is settled then and there.

Honorable Prime Minister said, “It is ‘good’ because it has subsumed more than 500 taxes and it is ‘simple’ because you (businessmen) have to fill only one form”. But the Finance Minister hinted, it is going to compress more than 1000 odd taxes and you have to file 3 returns. Anyways GST mongers are of the view that it is going bring down prices and it will certainly boost the economic growth. Not only that, it will bring about more transparency and honesty in tax compliance.

GST may be good for the common men but it is not so good for the rich and surely bad for the mendacious businessmen. It is good for the common people for the simple reason that all the basic things of life are going to be cheaper. It is not so good for the rich people because the luxury items and pricey things and comfortable services including organ rejuvenation will become costlier.

It is bad for the crocked businessmen because the entire business will now be monitorable online and interlinked for tax compliance. GST may not be good even for honest businessmen particularly the manufacturers. Their profit will be eaten up either by the State or the Centre or by the Consumer.

Suppose in KBC (Kaun Banega Carorpati) or in UPSC /MPSC Prelims this question is asked : What is the full form of the abbreviation GST : OPTIONS ARE (A) Gambling Services Tax (B)General Spirits Tax (C) Gun Suppliers Tax (D) Good and Simple Tax. Obviously the correct answer shall be (D). Who can be more correct than the Prime Minister?

Common people like me are more interested in 0% tax; rice (khola ), raw vegetables, atta (khola), salt, eggs, sangom(milk), chini-angangba (gur), ngari (fermented fry), soibum (fermented bamboo shoot), hawaizar(fermented bean), local brew ( non commercial Yu), keini, bidi, etc are completely exempted. I am not sure about the last two items but that is my wish.

Most economists are of the view that GST will certainly bring about positive changes everywhere; it will benefit one and all. Here, I beg to differ for the simple reason that those business which are being run on the basis of kacha/ pukka receipts will certainly incur loses humongously. The big thugs and multinationals don’t have any problem because they have experts to find loop holes in any system. GST is a baby, just born, extremely gullible; it can be easily manipulated by any crock.

In addition the inspectors/officials of indirect taxes may not be quite enthusiastic to deal with the new system. Perhaps they are not happy with the GST dispensation. First it kills the scope for side income. Second they have to read a lot to understand the intricacies of the new system. Third they will be asked to assist the traders and businessmen for free. Lastly the machines and the computers will do the maximum work and many of them may be retrenched or be given forced retirement.

Once again I am pleading the GST Council to keep away the mass entertainment things/programs from the ambit of GST like movie tickets (even a limit of 100 Rupees sounds unentertaining).The entertainment industry must be given maximum relaxation if not zero. Whether it is dance, drama, play, game, movie, singing, comedy-program, soap-operas etc. the tax rate ought to be either nominal or nil.

Finally, GST is a very crucial thing for the country; it provides a kind of unifying strand and an integrating force for the whole nation. One nation one Constitution (Except J&K and now likely Nagaland), one country one Tax (GST a giant step towards that goal), one people one market-rate (except for open-things, hawkers & venders) will be the norm. This is a great feat and great feeling.

GST is indeed a great moment for the poor people and middle class. Rich and affluent section is not enthusiastic about it. The reasons are quite obvious. When the 5- Star- Suite, Single-malt and BMW become costly proletariats feel happy. GST once again revives the thrill of Demonetization. Unfortunately this will be read by the bourgeoisie only.


* Free Thinker wrote this article for The Sangai Express
This article was posted on July 07, 2017.


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