Vinod Dua discusses the latest revisions in GST tax slabs and the deteriorating law and order situation in Haryana.
Aiming to boost the struggling agriculture and rural economy, and encourage clean energy, the Council is expected to rationalise rates.
If anything, GST has proved a nightmare for businesses in the short-term, especially for those in the informal sector.
The farm economy deteriorated and small enterprises were hit badly in the last year.
The Central government is reportedly planning to borrow an additional amount from the markets, over and above the budget estimate of Rs 5.80 lakh crore for fiscal year 2017-18.
GST collection declined from over Rs 83,000 crore in October.
Many textile traders who were involved in the protest say they will vote for the BJP again because the Congress fielded an unknown candidate and was not able to win their confidence.
Not only is the real rate of GDP growth less than what the data suggest, it is also likely to fall in the coming quarters.
India’s exports turned negative with a 1.1% drop in October. There is fear that it could fall further in November with exporters finding it difficult to comply with GST.
The court also expressed unhappiness over the absence of any women in 31-member GST Council.
While government is of the view that the nature of the tax reform required it to be a shock, implementing it in a phased manner could have helped avoid much of the disruptions being experienced.
The trade deficit widened to $14.02 billion last month from $8.98 billion in September.
“Apart from the high taxation rate, what is creating a lot of problems is that people in the trade are unable to understand the working of the new system.”
A simpler and lower rate of tax is what was needed to widen the country’s tax base substantially. This was totally missing in GST’s initial design.
While many say that GST and demonetisation have dealt a severe blow to their livelihoods, some still remain hopeful that the Modi government will take steps to address the fast deteriorating conditions.
The move, which is aimed at providing relief to consumers and businesses, will cost in a loss of Rs 20,000 crore in revenue.
The decision taken by the GST Council will have a revenue implication of Rs 20,000 crore annually.
The World Bank report ranked India top among the South Asian nations.
Former finance minister P. Chidambaram talks about the Modi government’s handling of the GST, Robert Vadra, Karti Chidambaram, attacks on the opposition, Gujarat elections and more in an interview with journalist Swati Chaturvedi.
Other textile traders have also said that they are thinking about whether to continue supporting the BJP after facing huge losses due to the GST.
Vinod Dua comments on revenue secretary Hasmukh Adhia’s statement on the GST and Modi’s claim that he inaugurated the first Ro-Ro ferry service in India.
Adhia said GST, which amalgamates more than a dozen central and state levies like excise duty, service tax and VAT, will take about a year to stabilise.
Successive governments have for decades discriminated against and neglected the handloom sector to favour mills and mechanised powerlooms.
Asked why he had referred to Vijay’s rarely used Christian name in his tweet, BJP leader H. Raja said the Tamil actor was a practicing Christian, which was reflected in his “hate campaign”.
While the cash crunch and increased prices due to GST have led to a sharp decline in demand, repeated appeals of traders to the Centre have failed to evoke a response.
With low sales, labourers in small-scale manufacturing units are facing an employment crisis, while those who have somehow managed to retain their jobs are earning very little.
“The entire trade chain is ruptured. Is this the ease of business the prime minister talks about?”
The government has said it will assess reasons for low rate of compliance.
Small and medium sized businesses across the country report tumbling sales, undermining job creation and damaging sentiment in industries crucial to Modi’s political powerbase.
“Compliance burden of medium and small taxpayers in GST is being reduced,” finance minister Arun Jaitley said.
Solutions involve either an immediate fiscal or monetary stabilisation policy, or pushing through further supply-side structural reforms.
“Policies that ought to be implemented, and ought to implemented well, like GST, are being completely fumbled,” Shourie also said in an interview to NDTV.
The 5.7% figure, based largely on data from the corporate sector, does not capture the almost one-third of the economy hit by demonetisation and GST.
The ownership and implementation shortcomings of the digital tax network have persisted for much longer, and go much deeper, than the finance minister would care to admit.
Fiscal policy is a potent instrument that must be used to alleviate the unemployment crisis, but first, supply-side constraints need to be systematically united.
Already struggling to survive and compete with cheaper machine-made goods, the added burden of GST compliance will decimate self-employed artisans.
Opposition parties and leaders may or may not be able to cobble together a coherent counter-narrative, but citizens are beginning to take note of the abuse of public confidence and poll promises.
The Goods and Services Tax (GST) is awfully complex and has confused not only businesses and the public, but also the government.
Vinod Dua discusses how the inefficient implementation of the GST is hurting the Indian economy and the clean Ganga campaign.
To restore confidence, better governance, rather than any additional fiscal push, is the need of the hour.