Dinesh Kamath's Editorial 'GST is become a big issue' that was published in Newsband

GST is become a big issue

The goods and services tax (GST) Council should make life simpler for an increasingly compliant tax-payer base. There could be introduction of a new compliance system under which a single monthly GST return will have to be submitted by firms, barring a few exceptions. Discussions over simplifying GST returns have been under way for months and considered by the Council, a committee of officers and a Group of Ministers.

The timelines for the transition are long and bring fresh uncertainty for businesses still recovering from the initial jitters and confusion around the tax regime. Firms will again have to cope with significant changes in accounting software in the middle of the financial year.

Centre is pushing for the imposition of a cess on sugar over and above the 5% GST levied on it. This will burden consumers while favouring larger sugarcane-growing States. There should be abolition of such cesses and surcharges, barring the compensation cess for funding States’ revenue losses for five years.

The GST is necessary to raise revenue. However, it could be simplified by having just a three tier tax format- a 5% flat tax on essentials, that is food and raw materials for food production, a 20% flat tax on non essentials like consumer products and a 30% flat tax on luxuries like gold, vehicles, etc. All Services including travel, etc. can be in the 20% bracket. This will make calculation easier. The tax for goods should be collected at source and the tax on services at the POS

One nation one tax concept is now turning out "one nation many tax rates and one cess or the other" as per whims of rulers or lobbies close to them. The common man or businesses don't matter anymore. The common man is yet to see the benefits of this GST but Central and State governments are very happy because their coffers are filling up with ease.

From the beginning, GST has been mired in controversy by its arbitrary rates and implementation. Now, policy changes are making it more complicated.

Taxes/Cess/Excise etc levied by Government against "Transactions" and trade actions of Business/Salaried/Professional classes should be scientifically regarded as "plundering" common people, for the benefit of the ruling class. Just because a percentage of those collections go for Military, Education, Health and some other welfare matters, we cannot splash a big Positive explanation as if Taxes are the Economy's most important thing for "Development". Development of a nation like India needs the following as most important - in this Order: (1) Minimum decent earnings for every able-bodied adult (involves salary/PF/Gratuity/Insurance/medical benefit etc); (2) Most modern Education for every Child from age 3/4 to the level of a First degree; (3) Total Healthcare for everyone, at affordable costs, which should be the same whether such things are for a PM/President or so-called ordinary common people. GST collections or any Tax collections would create more dishonesty.