It would be foolish to deny the benefits of the landmark legislation for the business community and in terms of administrative streamlining, but more foolish still is the notion that it is going to radically change India’s growth story.
The passage of the much-debated, much-awaited Goods and Services Tax Bill in both Houses of the parliament has divided and inflamed opinions in a way that leaves no room for doubts about the significance of the legislation. The tortuous passage of the GST Bill has been declared as a political victory for the ruling BJP government a declared as the biggest reform in post independent India that turns the country as one big market with one tax system. However, naysayers, denounce it as a body blow to federalism, a death knell for the manufacturing states, and a move that in all likelihood will have no positive effects on growth or inflation. Worse, it is seen as a bill that will help the fat cats and leave the poor and impoverished what the hell the fuss all about.The fundamental idea behind GST is simple enough: remove the distortions within the existing Value-Added Tax regime like customs duty (a Central levy on products imported from abroad) and entertainment tax (levied by States) do not come under the VAT umbrella. At the Central level, ‘goods’ and ‘services’ are treated as separate entities. The former are subject to different rates on the basis of whether they are MRP or non-MRP goods; the latter is a Union monopoly.
Not only do these distinctions contribute to the complexity of the tax regime, they are often invalid. The line between ‘goods’ and ‘services’ is by no means a clear one, particularly in the age of information technology, when, to illustrate, a software update could be a discrete product (a good) or a part of a maintenance package (a service).
Denne historien er fra SEPTEMBER 2016-utgaven av Hardnews.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra SEPTEMBER 2016-utgaven av Hardnews.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
The Making Of A Hard State
By ratcheting up nationalistic sentiments to a fever pitch, the BJP is trying to reap political dividends.
The Business Of Encounters
The UP police claim that it has seized over ₹146 crore from ‘gangsters’ in the state in a matter of 11 months deserves closer scrutiny as allegations mount of arbitrariness in seizing properties
Cases 1000, 2000, 3000, 4000: What Is Happening To Netanyahu
Everything you need to know about the cases against Israeli PM Benjamin Netanyahu
India's Botched-up Id Project
The SC verdict in the ongoing case to ascertain the constitutional validity of Aadhaar will have far-reaching consequences
A 'Softer' Islam, For A Moderate Modi
DESPITE BEING UNDERRATED and under editorialised by the Indian media, there is nothing that anyone can really take away from the importance of the event organised by the Indian Islamic and Cultural Centre (IICC) to provide a forum for the visiting King of Jordan, His Majesty, King Abdullah II, to expound his views on the moderate nature of Islam and the imperative to fight radical Islam.
Net Neutrality and an Open Internet
In recent years, the campaign to maintain citizen's right to the Internet - and protect them from practices that would benefit only a few - has become firece and noisy.
Referendum on Cash Ban
If early polling is anything to go by, then the assembly elections across five states could mean an all or nothing scenario for the BJP
changing the demonetisation narrative like a chameleon changes colours
no matter what the spin around the note ban, it is clear the move was a politically expedient decision rather than a principled policy move.
Come and See The Blood In The Streets
Incidents of violence targetting the minorities have become routine in the last 16 months. Prime Minister Modis government has done little to shun the belief that the culprits dont enjoy its patronage.
The Gates of Memory: Two Hundred Years Of Silence
People take part in a ceremony at the monument "The Gates of Memory"near the village of Trostenets.