basic reasons for a muted sentiments in the market
Post GST, the situation is that the consumers have to pay Service Charges/GST on the income besides the I-Tax, and also pay a very high rate of GST on all the purchases. These are the basic reasons for a muted sentiments in the market.
The 52 % of the 7659 citizens polled is projected sentiment of the lower middle income group of consumers who will buy the basics in this festival season. I see the 28% of the consumers that say that they will not be spending anything in this festival season are the ones belonging to informed educated middle income group. Those 19% who say that they will be making a reasonable spending of Rs 10,000 to Rs 50,000, I believe, belong to the upper income group of consumers. This is my interpretation of the LocalCircle's poll after taking into consideration the expected salary rise that generally come around the festive season annually.
Why the GST is failing or has failed, because the Govt has formed a policy and invited public comments also. But the most important dimension of the implementation is "the Procedure" that will determine the tax collection process by the States and the design format of the Tax Invoice by the traders to the retailers. The Procedure to be adopted should have been put by the Centre on website for public comments, particularly the consumers/buers. By not putting a designed format of process or procedure of collecting GST by the States, has purposely left the loop holes for the trade to exploit and generate the black money and corrupt practices.
Otherwise, VAT is the best system of collected taxes on sales that provided for the "set off" value and liberally made provisions for the dealers and retailers to absorb their portion of the VAT.
I LOUDLY MENTION THAT WHATEVER THE TAX RATE THE STATES MAY IMPOSE ON THE BUYERS/CONSUMERS, THE PROCEDURE FOR COLLECTING THE TAXES OF ANY HUE FROM THE CONSUMERS MUST BE UNIFORM THROUGHOUT THE COUNTRY. AND, THIS ALONE WILL CONFORM TO THE PRINCIPLE OF "FEDERATING STATES". more
The 52 % of the 7659 citizens polled is projected sentiment of the lower middle income group of consumers who will buy the basics in this festival season. I see the 28% of the consumers that say that they will not be spending anything in this festival season are the ones belonging to informed educated middle income group. Those 19% who say that they will be making a reasonable spending of Rs 10,000 to Rs 50,000, I believe, belong to the upper income group of consumers. This is my interpretation of the LocalCircle's poll after taking into consideration the expected salary rise that generally come around the festive season annually.
Why the GST is failing or has failed, because the Govt has formed a policy and invited public comments also. But the most important dimension of the implementation is "the Procedure" that will determine the tax collection process by the States and the design format of the Tax Invoice by the traders to the retailers. The Procedure to be adopted should have been put by the Centre on website for public comments, particularly the consumers/buers. By not putting a designed format of process or procedure of collecting GST by the States, has purposely left the loop holes for the trade to exploit and generate the black money and corrupt practices.
Otherwise, VAT is the best system of collected taxes on sales that provided for the "set off" value and liberally made provisions for the dealers and retailers to absorb their portion of the VAT.
I LOUDLY MENTION THAT WHATEVER THE TAX RATE THE STATES MAY IMPOSE ON THE BUYERS/CONSUMERS, THE PROCEDURE FOR COLLECTING THE TAXES OF ANY HUE FROM THE CONSUMERS MUST BE UNIFORM THROUGHOUT THE COUNTRY. AND, THIS ALONE WILL CONFORM TO THE PRINCIPLE OF "FEDERATING STATES". more
Viewed by 753
View all 8 comments Below 8 comments
In my opinion the prices of most of the products should decrease after GST because GST includes execise on ex-factory price. But in practice Govt has failed in formulating rules as to how MRP should be fixed. As per my understanding the manufacturer is required to pay GST on ex-factory price at source. and consumer is required to pay GST on difference between ex-factory price and retail price. But as usual Govt is unclear and traders are confused. Therefore trader wants to be safe and charges maximum of all the options lest GST inspector troubles him demands GST on sale price. In my opinion all products should have Ex-factory price, GST already paid on ex-factory price and MRP inclusive of GST. Then only things will get rationalised. more
Sep 28
MRP includes GST> Consumer must watch whether the bill has GST number when GST is collected.GST collected from the consumer and passed on to the player above. ultimately it reaches the Government. Without spending a pie, Government gets the money. Procedures are important and it is for the merchants to worry about. more
Sep 27
After the coming into effect of GST prices of all products have gone up drastically. No company is passing anything to the customers hence ultimately customers are only bearing the brunt of GST more
Sep 26
It is really bad that GST continues with lots of loop holes and government is very slow in rectifying the same. more
Sep 26
Dear Mr. Mathur, the whole economy & people is passing through a nightmare since Nov 8, 2016 when our great PM Modi dropped the bomb of DEMO, called in his words Surgical strike. To start with he is an AUTOCRAT and he thinks JUGAD is the solution to take the country forward by mobile & mouse user unemployable millennials. He is just fooling the country when he says that Elections are not important. But he is actually doing the just opposite, for the great DUO, the goal is to only grab power all over the country by hook or by crook. Their designs are all out in the open now and people have suffered the total loss of confidence in his theatrics. Now coming the time to take stock and he is hurriedly constituting high-powered committees to take the limelight of failure away from himself. Would request everyone to visit my FB page for some out-of-the-box solutions to take the country out of this quagmire. more
Sep 25
