Hmm .. solicit attention to something – apparently – in vogue !! *giggle*
Well .. Been mute spectator to an amusing talk in vogue – which is culminating into anything, but sporadic thing! LoL ! Hint: Synonymous to a local vendor exhibiting obscure technical acumen towards intricacies of economic aspects of online retail industry! 🙂 Hmm ..
All of you would definitely concede – sans sarcasm – Isn’t it discernible – every other mortal – glancing through Economic Times – nowadays lectures on fiscal prudence attributes of GST, every other relatively qualified politician conversing on the economic, legal intricacies of GST ? 🙂
Hmm .. spotted a subdued wicked smile being passed !! Me too did !!
As an illustration, pursuing to be in vogue, one of my call centre BPO pal, with no qualification or expertise in fiscal intricacies, sent this link to me ! * loud giggle *
The introduction of Goods and Services Tax (GST) would be a significant step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax would mitigate cascading or double taxation, facilitating a common national market. The simplicity of the tax should lead to easier administration and enforcement.From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%
That surely prompted uncivilized hysteric giggles !! Hmm ..
Now, fasten seat belts to get intellectually jolted unto obnoxious reality!
Topic of GST is being employed more as a political tool – to project – accomplishment of some obscure fiscal reform – synonymous of – culminating into a rebellion vs earlier power center’s fiscal flawed initiatives!
However, its more of cosmetic – rather than – actually being a massive fiscal game changer!
Indian system – via our Indian constitution – is governed under federal structure – wherein – Union government & State government – both have precise earmarked fiscal boundaries to empower their growth, reform initiatives! Fiscal levies are imposed at various occurrences – in terms of whole value chain – from initiation to conclusion till end user! Regarding commercial transactions involving multiple jurisdictions, Indian Constitution was duly amended to empower a CST levy – wherein Union would collect levies – in case of transaction involving more than one state !
Overheard some discussions – claiming – objective of GST – as – obliterating erring multiple fiscal levies at same economic stage of a transaction – & consequently eradication of double taxation issues! Thats incorrect technically! Fact is that Indian system had already eradicated the said loophole – via introduction of value added system of levy – long back !
GST is a mere culmination of multiple value added fiscal levies – under federal structure of India – culminating into single or fewer ones! Till perusal of final draft, it is even unclear – whether GST would be replacing entire set of indirect fiscal levies or with some aberrations ! Some financial drafts indicate that petrol etc some commodities – would be outside the purview of GST ! That assertively made heads roll ! If all levies are not culminating into single, then, whole process would seem futile ! Sole advantage seems to be transparency and clarity of levies – for foreign investments flowing into jurisdiction, & convenience in administering & planning fiscal system – for both the fiscal assessed & assessing !
Conjectures were proliferated – attributing – fall in inflation indices – specially wholesale – to this fiscal rebellion via GST! Well, that is a unfeasible conjecture – till final draft by ministry of finance is published publicly! However, with current obnoxious fiscal deficit figures and revenue shortfalls, that too, seems far-fetched – at best ! Abatement in indirect levies seem unattainable !
So, subsequent applauds – better be skeptical, informed & subdued! *giggle*