Make GST a Good and Simple Tax
Instead of keeping the GST good and simple tax as envisaged by PM Modiji, the Babus in Ministry of Finance left a loop hole of ÏNPUT TAX CREDIT" (ITC) for corruption. As per government ITC is four times the GST collected. Therefore ITC frauds are taking place on massive scale all over India. GST authorities are able to catch a few of them.
All suggestions to FM & Ministry of Finance to introduce GST rates without ITC have fallen on deaf ears. For Restaurants GST rate of 5% was introduced a few years back and it is working fine.
Because of ITC there are a large number of cases before Advance Ruling Authority and Courts who are giving different ruling for same queries. To cite an example Madras High Court ruled that in case of Cooperative Housing Societies and RWA the exemption on monthly contribution is 7500 Rupees and GST of 18% should be levied on the amount after deducting 7500.
But another Advance Ruling authority has ruled that if monthly contribution exceeds 7500 then 18% GST is payable on total amount.
GST on Cooperative Housing Societies on reimbursement of maintenance charges is unconstitutional as Societies are not doing any commercial activity and are registered for convenience of members. more
All suggestions to FM & Ministry of Finance to introduce GST rates without ITC have fallen on deaf ears. For Restaurants GST rate of 5% was introduced a few years back and it is working fine.
Because of ITC there are a large number of cases before Advance Ruling Authority and Courts who are giving different ruling for same queries. To cite an example Madras High Court ruled that in case of Cooperative Housing Societies and RWA the exemption on monthly contribution is 7500 Rupees and GST of 18% should be levied on the amount after deducting 7500.
But another Advance Ruling authority has ruled that if monthly contribution exceeds 7500 then 18% GST is payable on total amount.
GST on Cooperative Housing Societies on reimbursement of maintenance charges is unconstitutional as Societies are not doing any commercial activity and are registered for convenience of members. more
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truly said cannot they have a good finance person who can revamp the gst by removing all the loop holes and make it easy for the customers to pay taxes.It is surprising why PM and FM are not looking into this and rectifying the same if it is a know evil . more
Oct 16
Loop hole is kept for corruption but it's failure of policymakers, who do not take feedback from field officers. All the goods and services are to be distributed amongst all commission rates to study and submit their factual reports on input credits and final GST rates. more
Oct 15
Input GST credit should be allowed only to the extent of percentage of final product / service tax is charged. Excess credit should stand laps. more
Oct 14
With the long experience of Modvat input credit( from the year 1985 ) why such a abnormal credit facility allowed in the GST scheme ? more
Oct 14
Some sort of action need to be initiated by the FM to plug this loophole at the earliest and hope they are aware of the same and working on it. more
Oct 11
