Question

i want a speech over gst-an unfair means. fast please have a debate over that on saturday could anyone help me please:))

Answer 1

India has both implemented and not implemented the spirit of a unifying GST. The GST subsumes a number of a central (central excise duty, countervailing customs duty) and state (state VAT, luxury tax, entry tax, octroi) taxes and thus prevents the dreaded cascading effect of taxes.

In spirit, therefore, there’s only one tax. In the pre-GST regime, a car manufacturer would have to pay a tax on his raw materials (say Rs 100) and a tax on his final output after creating the car (say Rs 130).

Under the GST regime, the car manufacturer can offset his ‘raw material tax’ against the ‘output tax’ – the total tax burden on the auto company would then become Rs 30 (Rs 130-Rs 100). This continues along the value chain to the wholesaler and then the retailer who sells you your car.

For consumers, India’s GST is one tax in the most practical sense that currently a bar of soap costs, theoretically, 29 different prices across 29 different states due to 29 different state VATs. Under the GST regime, there’s just one GST rate for a bar of soap: 18%.

Where India differs from other countries that have implemented GST is that there isn’t one single rate that applies to all goods or services. In Singapore, the tax levied on a pair of shoes and the tax levied on a bar of soap is the same – 7%.

Why didn’t we end up with ‘one nation- one tax’ or a single-rate structure for our GST?

It wasn’t for a lack of advice; government or otherwise. In 2009, the 13th Finance Commission strongly recommended that India’s GST should be levied at a single rate of 12%. Six years later, the Expert Committee on the Revenue Neutral Rate for GST suggested a potential three rate structure while noting that of the countries that had adopted GST, 90% of them went with a single-rate structure.

Why, then, was this advice ignored?

Firstly, in order to protect existing government (both central and state) revenue. This is why nearly 60% of all goods under GST will be taxed at either 18% or 28%. And why nearly 20% of all goods are in the 28% rate bracket, a bracket that should have ideally only had classic luxury items or goods on which a sin tax should be levied. Instead, the 28% bracket has bulged to include non-essentials such as chocolates, chewing gum, shampoo, deodorant and paints in addition to the more typical items such as yachts and jets.

This is also why key petroleum products and alcohol have been kept out of the ambit of the GST. Both bring in huge amounts of revenue at the Centre and state level and keeping them out allows governments to continue with constant tinkering to fill shortfalls in future budgets. The decision to leave out petroproducts is particularly disadvantageous for the average Indian consumer. As The Wire has pointed out, although global oil prices have steadily declined over the last six years, the Modi government has increased excise duties by over 150% over the last three years.

The final two reasons are that:

India’s poor needed to be protected
Various political considerations took a toll on GST
The first explains why both the 0% and 5% bracket exist and why 30% of the CPI basket and essential services are exempt.

The second reason, however, is why GST’s scope becomes unnecessarily unwieldy. The GST council and its ‘rate fitment committee’ was made up of politicians and central and state tax officials. They have worked very hard, as one commentator put it, to make sure the GST rate structure resembled India’s old tax system.

Answer 2

i think this will gives u some bitter info