Tired of debating? Have a break... have a Chit Chat - Page 43

Originally posted by: charminggenie

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.

Originally posted by: K.Universe.

If you could have only one, would you go with coffee or tea?

I would go with coffee.

Originally posted by: charminggenie

Neither. Not a coffee or a tea person. 😆

Yeah, I am aware people like you exist. You guys need a separate Venn diagram for yourselves😆

Olympics be so heartbreaking.But huge respect for Abhinav , his gun malfunctioned and yet managed to get 4th rank.

India and sports. Better luck in the 22nd century.

But who am I to take potshots? People like me take academics over sports. We are the "play it safe" crowd.