GST rate manipulation - political tool
Like GST rates were changed on Friday, is there risk that party in power will manipulate them in future based on elections and political objectives.
Should there be some mechanism developed with consultation so misuse is stopped? more
Should there be some mechanism developed with consultation so misuse is stopped? more
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First of all, as per GST constitutional amendment act;the review and alteration of GST rates, adding/removal of item from GST etc is looked into and decided by GST council (a council of chief ministers of all states and headed by FM) and decision is taken by council by majority. So there is no question of manipulation for political milage by party at centre, as all CM are consulted and voting process is followed. Otherwise by the time alcohol n oil &gas products would have been under GST..but states opposition hasn't allowed that to happen. Hence it's not whims n fancy of got of India. . They are only facilitator for this unified tax collection system and distributing to states from IGST portion and compensating manufacturing states for 5 yrs. . The reason why centre handles all this is because it's only central government who has powers to amend constitution for such major federal change in sharing and collection of taxes.. Tax slabs were decided by empowered group of FM of states (chaired by Union FM), again a federal process.. not solely by union government. And the same were approved by both Houses and states.. Now any tweaking wrt to GST provisions is job of GST council and not by union government. So stop spreading such misinformation. GST is tax reform which was followed after a complete consensus between political parties except AIDMK.. Any federal structure of constitutional amendment is passed by both houses and more than 50% states must consent. Hence states and all political parties were always on boatd. now all hippocrat's politico are blaming union govt for glitches in tax structure.. It's big big reform which would require time to fine tune. So yes there are checks and balances in GST such that political party @ centre can't alter gst taxation system unless all states are on board.. more
Oct 10
GST reduction on Khakra is an example. When election in Maharashtra it will be Vada Pav. When In Punjab Chola Bhatura. Tamil Nadu Dosa. AT Telangana Idli WB luchi Rasagulla. List goes on what a state of affairs kithech or canteen cabinet ? more
Oct 10
Wait for 1yr to stabilize rates than law can be made that no polical party can change the rates. more
Oct 09
It is not manipulation but viewed as review process which is on going until a reasonable acceptable GST rate is found by concerned parties . more
Oct 09
GST rates reduction is not concern ,You have to reduce selling price of Perishable Commodities by 70 % and Manufactured commodities by 50 % which this government has not done which every manufacturing company can easily afford. As basis prices reduces turnover will increase with satisfaction for consumer and automatically govt will get Gst on increased turnover. Also without reducing prices of commodities or manufactured product this things are impossible.This is called variance analysis. IF we are selling material at 50000 cost is 40000 profit will be 10000. if we reduce prices to 45000 we can sell more unit say e.g 2 units selling price will be 90000 cost will be 80000 profit will be 10000. If i am getting same profit why we should hold stock by not reducing prices.Therefore Govt will get same revenue but in advance and Fixed cost related to material per unit will get reduced by increase in turnover. My contention is that if my cost of material is more than market then only we should hold stock otherwise we have to follow above techniques. GST may remain or may go ,percentage of gst may reduce or increase we should have strategy sothat end consumer should get it at break even price plus smaller profit. Thanks, Mahesh Prabhu On Sunday, October 8, 2017, 3:03:19 PM GMT+5:30, Ruchika L Maheshwari wrote: more
Oct 09
