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charminggenie

@charminggenie

Stunner

+ 2

Posted: 9 years ago

#411

Originally posted by: K.Universe.
"Clean chit"?

It's been a while since I heard that vernacular.

Some articles mentioned how Courts gave Salman "clean chit" in his case too. 🥱

This GST is such an interesting decision. Good on Modi and smart of Cong . But only real implication after 2019.

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charminggenie

@charminggenie

Stunner

+ 2

Posted: 9 years ago

#412

@Arwen- Simone Biles might be the biggest Olympic story this time.

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@K.Universe.

Voyager

Posted: 9 years ago

#413

Originally posted by: charminggenie

Some articles mentioned how Courts gave Salman "clean chit" in his case too. 🥱

No "chit"!

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enigmatic_zephy

@enigmatic_zephy

Inactive

+ 3

Posted: 9 years ago

#414

@genie

@GST

so, does GST not

a) drastically reduce tax income of the govt ( for a deficit country, how does that help?)

b) lower prices will lead to increased demand or stagnant demand (based on resource and raw material availability)

c)allow rich to buy more of the lower priced product specially if its real estate or similar

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charminggenie

@charminggenie

Stunner

+ 2

Posted: 9 years ago

#415

^^ I will write a big essay on this Zephys. Will try to cover all points.

It's a long term thing for now..you might see inflation going up a bit too but when it settles in .that is in long term a very good thing. Writing the essay.

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raj5000

@raj5000

Sparkler

Posted: 9 years ago

#416

WOW, this place is almost dead. Any old aatmas bhatking out here?? Just thought of stop by and say hi, been a while I came to this place...

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charminggenie

@charminggenie

Stunner

+ 2

Posted: 9 years ago

#417

First our VAT system while reduced alot of tax on tax provisions , it still had one major one. As in credit for Input VAT is available against Output VAT. It is calculated on a commodity which has excise duty. Tax on Tax.

GST will cover all these taxes except Basic Custom Duty.

GST for State and Center-

With GST , things will be -

State to State - CGST and SGST ( state govt collected GST)

Here , if the commodity moves within the state ( sale and resale), there is a good arrangement of tax collected between State and Govt. There is no deficit or credit given, ideally.

State to another state- This is where the biggest loss a country like India was facing. Interstate movement so , Integrated GST will ensure the State gets credit if it bears loss as IGST is levied against it.

In another terms, inter-state taxes will go to the destination state unlike origin one which means this consumer tax money will go to the state which is consuming the goods/services. Places with more population and more consummation will pay taxes for the development of their state. Also per capita tax collection will even out against the country compared to now where it is marginalized in fewer states.

Edit - this stupid pic is not showing, but google up , tax collected from different states.

^^^ See , the unevenness of tax collected. So GST will ensure that manufacturing look at other states too and generate employment and infrastructure because consumer based tax.

Also, it removes location biased.

Your SMEs and other manufacturers can move from one state to another without varying about dual tax or different tax slabs because it be same in every state. Generates more business.

GST will reduce tax evasion .

Because now the distributor will prefer to do business with invoice because they are getting benefited because they get credit on all the taxes paid in comparison to now when they have to bear the burden of excise duty hence they avoided in-voice.

Less compliance, procedural cost for a country like India saves a lot of money. You are removing VAT, excise, CST, ST etc from businesses and bringing them under a unified levy tax system. Mind it most of those taxes hardly reached the govt .This is adapted by most of your developed countries to safeguard economy against multiple taxes.It is giving boast to SMEs as they are given higher exemptions if turnaround be between 10-50Lakh and manufactures will be relieved with GST as it promises to reduce logistics cost.We were loosing lot of money because of tax by tax as many either evaded or lost in multiple channels.

You are creating a consolidated market space.

Most IBanks and credit Agencies are reporting a 2% boast atleast to economic growth in the next 3-4 years. A lot of this depends on Govt and on which Neutral Revenue Rate it plans to introduce GST to fully tell you how much the revenue will increase . Also clarify CENVAT tax rules. But these are decided after political consultation . Also simplifying taxes always help ,case in point VAT.

Politically- this is a great move and finally something Modi Govt can be proud of. It gambled it's political chances in 2019 to pass this bill and Cong played it well by supporting it. Whoever comes to power in 2019 will benefit this in long term.

Edited by charminggenie - 9 years ago

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charminggenie

@charminggenie

Stunner

+ 2

Posted: 9 years ago

#418

Originally posted by: enigmatic_zephy
@genie
@GST

so, does GST not

a) drastically reduce tax income of the govt ( for a deficit country, how does that help?)
Answered aboveVAT regulations and rates generally vary across states with states resorting to undercutting of rates to attract more investors. This generally leads to a loss of revenue to both the state and centre. GST would introduce uniform taxation laws across states and different sectors. The taxes would be divided between the state and centre, based on a formula that would be acceptable to both. Also, it would be easier to supply goods and services uniformly across the country, as no additional taxes would have to be paid across different states.

b) lower prices will lead to increased demand or stagnant demand (based on resource and raw material availability)
Actually opposite is expected , taxes will be distributed across the chain, the consumer prices are likely to rise to maintain the current tax revenue levels though Govt says it will provite tax cuts across various brackets,tax payer is likely to get a meager tax cut for the GST he would pay for all the goods or services he purchases. This is why the opposition was stalling the bill.

c)allow rich to buy more of the lower priced product specially if its real estate or similar
I don't really understand this because by all quarters GST is a long term policy which is expected to for now see through increase in inflation rates, administrative costs etc.
While in the long run it is expected to generate employment, higher output.
Tax on retail will double.inported goods would be taxed at a higher rate, tax on services will also increase

If good were going to be cheaper , then nobody would have opposed it especially your AIADMK which used this to walk out. Prices are expected to rise for now. This is why this is a gamble for Modi because he has to control inflation now and implement this and if he wins 2019 then he benefits warna the one who wins that election will. 😆

Edited by charminggenie - 9 years ago

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souro

@souro

Alumni

+ 2

Posted: 9 years ago

#419

Originally posted by: raj5000
WOW, this place is almost dead. Any old aatmas bhatking out here?? Just thought of stop by and say hi, been a while I came to this place...

Nice to see an old member back. Been ages since you last came here. Your DP wala actor recently returned to silver screen after 4 yrs hiatus, you returned after 6-7 yrs I guess.

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raj5000

@raj5000

Sparkler

Posted: 9 years ago

#420

Originally posted by: souro

Nice to see an old member back. Been ages since you last came here. Your DP wala actor recently returned to silver screen after 4 yrs hiatus, you returned after 6-7 yrs I guess.

I know, right time changes once a hero now coming as villian and here I am not moderating so no more villian 😉😆 Nice to catch up, TC!