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30th June - The Hindu Editorial - Part-2(in Hindi)
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Subhodeep Das
Dream of Achieving Big l YouTube & Facebook : Subhodeep

U
Unacademy user
Mam CDP was launched experimentally in one village and its a failure then whats the need to extend it through NES as we know its a failure
No Lavanya. We can't assess the success or failure of a scheme in a year. the assessment was done after both the schemes were launched
Sir plz guide how to prepare notes from these lessons
I
sir can you explain 3 returns in a month??
thank you sir very well explained.
  1. A broken tax chain broken tax chain A year ago, at a special midnight session in Parliament, the launch of the goods and services tax (GST) was heralded as the new freedom. A year on, what has the GST achieved? ? :: - S. UBHODEEP


  2. Arguments in favour of the GST were that it would lead to ease of doing business; make markets efficient; yield higher tax collections; and lead to lower prices. With higher tax collection, the government would be able to deliver better services. Thus, the GST was presented as a win-win situation for everyone. There will be many short comings when a complex reform is rolled out. But the question is this: is the economy headed in the right direction? S. UBHODEEP


  3. EDITORIAL DISCUSSION 30th June THE HINDU unacademy


  4. From the start Businesses have not yet experienced 'ease of doing business' though some have adjusted to it. The IT functioning of the Goods and Service Tax Network (GSTN) has been unsatisfactory due to problems or inordinate delays in access because of the volume of traffic. If some suppliers delayed filing or did not file, one had to chase them or one could not file one's return. (3 returns a month) Even though it was computerised, accounting was difficult So, even though 17 taxes were replaced by one tax made up of many prts,simpliication did not follow. UBHODEP UBHODEEP


  5. The small businesses operating under the Composition Scheme (turnover between R20 lakh and 75 lakh; later the limit was raised to 1.5 crore) had their own woes. They could not give input tax credit (ITC) and if anyone bought from them, then the buyer had to pay the tax that the small business should have paid. This was the reverse charge mechanism (RCM) These small businesses were not permitted to make inter- State sales so that their market became limited in case they were at the border of the State. Thus, not only big but also small businesses faced severe difficulties. UBHODEEP


  6. Government made rapid changes this only added to the confusion. O the e-way bill to track goods being transported) was postponed to April 2018. ORCM was suspended The tax rate for businesses under the Composition Scheme was brought down. Restaurants were brought under the Composition Scheme with a 5% tax rate now, there have b problems cropping up and clarifications being sought from the authorities UBHODEEP


  7. Prices have not fallen GST has contributed to inflation because services are now taxed higher the rate has risen to 18% from 15%. Supposed to lower the cost to businesses and reduce cascading effect (and thereby lower final prices) has not worked. Gov. Wanting to legislate the anti-profiteering clause. But it is proving hard to implement; industry is resisting it UBHODEEP


  8. Even though essential goods are exempt under the GST, as basic goods and services prices rise, all prices increase. For instance, if diesel or truck prices rise, transport costs increase. Tax structure 0%, 5%, 12%, 18% and 28%-also adds to the complexity. there are different rates for gold and jewellery. Some petro-goods and alcohol (human consumption) are not a part of the GST. Electricity and real estate are also out of the GST UBHODEEP


  9. The multiplicity of tax rates and exemptions means that the cascading effect continues. India does not have a full GST which is applicable from raw material to the final good/service. The chain is broken in many places. This partial GST is a result of trying to fulfil many policy objectives But Lack of Preparedness. UBHODEEP


  10. Conclusion: The GST is not bigger than the policy changes introduced in 1991 and hence not the biggest reform. It is not yielding more revenue to enable governments to spend more on services for the poor. Further, by damaging the unorganised sectors, it has set back output and employment in the economy rather than leading to a higher growth rate. These problems emanate from introducing a very complex tax in a complex economy. In brief, while there are a few gains UBHODEEP