Question

any conclusion for gst

Answer 1

I would like to give a few more points to explain my view point that GST is not beneficial to common man., but on the contrary it is beneficial to big corporate thus indirectly to political parties especially ruling parties at various times.
1. Now goods not conducive or harmful to the health of people are taxed extra by means known as 'Sin Tax',or 'deterrent tax' . Thus tobacco and tobacco related items are penalised making cost of Cigarettes etc more. Kerala state has started a'Fat Tax' on Pizza etc. That was to discourage and even prevent people from falling victims to such habits. That serves a social –health responsibility of the government. Now they are all out of extra taxation and are taxed as any other goods. This will pave way for higher social health cost which will only help to increase further taxation.
2. The government ha not agreed to put any higher cap for tax rates. That very clearly shows that there is always chance of higher rates of taxes. This will tear away the arguments of those who say that GST is good.
3. GST does not do away with or replace all kinds of taxation. It has just merged just a handful or less different taxes and fused them in one name.
4. Service tax is subsumed, but all services are included in GST as akin to goods. Those sectors now excluded may first resist an try to avoid but if compelled will simply transfer the burden on the final service user. So in effect there will be more items coming under service tax in the guise of GST.
5. The supporters of GST claim that litigation on tax matters will be reduced. That is not true. It depends on how clearly terms of implementation are worded and interpreted. Going from the experience of 'officialise' or the jargons and clause- in-clause wordings of our laws and rules, I am not that optimistic. The legal sector itself will be one which may start litigations as now they also come under service taxes if interpreted correctly.
6. The service sectors will try to avoid or reduce tax liability by terming the major part of service costs as reimbursements or revenue expenses etc which could be got back and tax exemptions obtained. That can defeat the expectation of higher tax revenue from service sector by GST.