Business

Basic and drastic reforms required in GST rather than now announced gimmick ones

October 07, 2017 11:24 PM

By Madhu Agrawal
It is beyond understanding how going back in reverse direction by providing big reliefs for buyers of artificial and real jewelry in Goods and Service Tax (GST) will help normal members of public and traders who cannot in general afford purchase of jewelry. Even artificial jewelry is luxury item which never required tax-cut. Raising limit of non-requirement of PAN number from rupees 50000 to 200000 will make investment of black money in jewelry convenient.   

Government should provide filing of quarterly GST-returns for all assesses rather than only for small traders requiring tax-deposit on monthly basis. GST-rates should be altogether rationalized at 10, 30, 50 and multiples of 100 percent abolishing concept of cess altogether in a manner that most commodities may be under 10-percent slab. Unfinished products or parts to be used in final manufacture can be kept at reduced 10-percent slab abolishing concept of draw-back. Increasing minimum tax-slab from 5 to 10 percent may look little harsh, but will provide practically much more relief by withdrawal of higher slabs at 12 and 18 percent. Final products to be used for longer use than can only be taxed at 30 percent with luxury items at other suggested higher slabs.

If GST on service is reduced to 10-percent, then scope of tax on service can be reduced from present 20 lakh per annum to five lakh per annum with those availing service worth more than five lakhs required to deposit GST directly to public-exchequer rather than routed through service-provider. Certificate of GST payment can then be provided to service-provider in the manner TDS certificates are given in Income Tax Act. Service-providers then may deposit GST only on services where GST might not have been deposited by those availing service.


The writer Madhu Agrawal is Guinness Record Holder for letters in newspapers

Have something to say? Post your comment