sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 How to get registered under goods and services tax
 Service Tax can’t be Levied on Activity of Collection of VAT on behalf of Commercial Tax Dept
 Why you should worry about June 15 advance tax date
 Five reasons why you should start your investments in tax saving funds now
 Income Tax Department Releases All 7 ITR Forms Check Details About New IT Forms
 Income tax benefits for senior citizens: Here is all you need to know in brief
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws

India must switch to the goods and services tax (GST) regime
December, 08th 2010

Everybody in the political class agrees India must switch to the goods and services  tax (GST) regime. Or do they? Centre-state talks have been on for some time to fix GST's contours and modalities of implementation. Yet, as with most reform initiatives in India approaching launch date, petty politics seems to yet again play spoke in the wheel.

As it is, states have demanded unreasonable concessions - including on rate structure, central sales tax's continuance and exemption for many items from under GST's ambit - that threaten to distort the purpose of indirect tax rationalisation. BJP-run states seem to now have upped the ante on obstructionism. On Monday, their finance ministers skipped a key empowered committee meeting to discuss pending issues, including constitutional amendments mooted for GST's take-off.

While Asim Dasgupta, chairing the state finance ministers' panel, has tried to underplay the issue of poor attendance, other ministers present have reportedly said that GST has become prey to political brinkmanship. They have reason. If the BJP simply differed in view with the Centre on matters strictly economic, its representatives would be at the negotiating table.

By staying away entirely, the party can't but be seen as conflating inter-party dialogue on GST with the on-going parliamentary logjam on a 2G scam-related JPC probe. Projecting itself as broadly pro-reform as a party in power, the BJP's churlishness as main opposition party at the national level merely smacks of opportunism.

Nor have other non-Congress parties demonstrated too much keenness in pushing GST, so much so that keeping the April 2011 rollout deadline looks near impossible. We've seen collective foot-dragging even though GST's myriad benefits will accrue to the country as a whole, especially state dispensations given to complaining about resource scarcity.

It's rather belated to argue that states' fiscal autonomy is at risk. GST's point is to dismantle an inefficient system marked by maze-like complexity and non-transparency, with multiple taxes levied at the central and state levels. It needs Centre-state cooperation to deliver.

States must certainly be compensated for revenue loss in the post-launch span of adjustment. But blocking GST's debut suggests myopia, given the cascading gains for all stakeholders. Creating a seamless common market that trims transaction costs, GST will make business more profitable and competitive and tax evasion more difficult. Improving tax compliance, in turn, will boost state coffers, thereby reducing fiscal deficits and providing resources for social spending.

Removal of tax multiplication will mean consumer-friendly product pricing, benefiting aam aadmi. Finally, estimates suggest that India could see growth rise by 1.5 percentage points with GST operationalised, and the economy's size doubling pretty rapidly. Surely that's the big picture we ought to focus on.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions