WHY GST IS NO LONGER A GOOD AND SIMPLE TAX
The Morning Standard|September 20, 2024
A simple rate structure with a broad base is crucial for a tax system. The GST Council must make the structure more stable and the administration friendlier to taxpayers
PARTHASARATHI SHOME
WHY GST IS NO LONGER A GOOD AND SIMPLE TAX

THE GST was to be a 'good and simple tax' when introduced in 2017 after a decade in preparation. After the latest meeting of the GST Council, it is difficult to perceive it as such. Time was spent on reporting on new revenue collection from 'demerit' goods such as gambling, horse racing and the like, while reporting on rate rationalisation was relegated to an anticipated report from a group of ministers.

This reverse prioritisation of revenue over rates revealed that the GST has been misunderstood. The GST is not a tax whose foundation is revenue collection.

It is a tax whose first objective is to minimise distortions in the market caused by high and multiple tax rates, achieve a large and uniform tax base, and guarantee that taxes paid on inputs are refunded to suppliers (producers and sellers) in the production-distribution process.

This ensures that any tax paid on inputs does not get embedded in its outputs, that is, there is no hidden 'tax on tax' or, in tax terminology, no 'cascading'. Without that, productive activity takes place through hurdles and obstacles that the suppliers of goods and services suffer.

Once the correct base and rate structure is set, automatically, the GST should become a good revenue generator. That is because it should reduce economic distortions as tax cascading is cut down when credit is given to any supplier for the tax he has paid on his purchases. The smooth supply chain thus generated should ensure economic growth with minimum market hindrances caused by taxes.

Diese Geschichte stammt aus der September 20, 2024-Ausgabe von The Morning Standard.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der September 20, 2024-Ausgabe von The Morning Standard.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS THE MORNING STANDARDAlle anzeigen
A FOREST OF ENCHANTMENT
The Morning Standard

A FOREST OF ENCHANTMENT

Multifaceted Delhi artist Kavita Chopra Dikshit's upcoming solo art show is a tribute to the life-giving forests of her Jharkhand small-town inhabited by the Santhal tribe

time-read
2 Minuten  |
November 13, 2024
Silk, style and celebration
The Morning Standard

Silk, style and celebration

The three stunning new collections embrace vibrant threadwork, striking box pallus, and culturally rich bhuttas

time-read
2 Minuten  |
November 13, 2024
Roots & Reverie
The Morning Standard

Roots & Reverie

Grammy nominees Ricky Kej and Varijashree Venugopal open up about the creative journeys behind their celebrated works—from Kej’s exploration of mental wellness in Break of Dawn to Venugopal’s featured performance alongside Jacob Collier and Anoushka Shankar—reflecting on the passion, purpose, and global recognition that fuel their music

time-read
2 Minuten  |
November 13, 2024
The Morning Standard

Mumbai women step up to defend T20 title

THE day Mumbai, the defending champions of the Senior Women's T20 Trophy, started their campaign to win the title again in Kotambi Stadium, a little outside of Vadodara, they had Jemimah Rodrigues leading the side.

time-read
1 min  |
November 13, 2024
Rahul, the anomaly of Indian cricket
The Morning Standard

Rahul, the anomaly of Indian cricket

The 32-year-old has been team management's go-to fix for every temporary issue they have had in recent years

time-read
3 Minuten  |
November 13, 2024
The Morning Standard

PCB seeks BCCI's reasons to refuse Pak tour from ICC

DAYS after the Board of Control for Cricket in India decided India would not travel to Pakistan for the 2025 Champions Trophy, Pakistan Cricket Board (PCB) mailed a detailed questionnaire to the International Cricket Council (ICC) seeking reasons behind the BCCI's move.

time-read
2 Minuten  |
November 13, 2024
Delhi seek turnaround against Jharkhand
The Morning Standard

Delhi seek turnaround against Jharkhand

After their nine-wicket loss against Chandigarh in the previous Ranji Trophy match, hosts Delhi will look to get the better of Jharkhand to improve their rankings in the points table.

time-read
2 Minuten  |
November 13, 2024
ACT: Deepika spot on as India win
The Morning Standard

ACT: Deepika spot on as India win

STRIKER Deepika converted a penalty stroke three minutes from the final hooter to lead India to a tense 3-2 win over South Korea in the women's Asian Champions Trophy, here Tuesday.

time-read
1 min  |
November 13, 2024
The Morning Standard

Starlink will receive service licence if it meets govt's conditions

TELECOM Minister Jyotiraditya Scindia stated on Tuesday that Elon Musk's Starlink will receive a service licence provided it meets the government's conditions and addresses security concerns.

time-read
1 min  |
November 13, 2024
The Morning Standard

Identify sites to set up nuclear power projects

POWER Minister Manohar Lal Khattar on Tuesday stated that he had urged states to identify potential sites for setting up nuclear power projects.

time-read
1 min  |
November 13, 2024