Global experience shows that implementing GST caused severe short to medium term disruption in countries’ economies – we shouldn’t expect better from India’s half-baked version either.
There are a few kinks to be worked out, but if implemented well, the manufacturing sector could be a GST winner while the telecom sector is likely to be worse off.
Will the multiple rate structure go against the very idea of GST? How controversial will the proposed anti-profiteering authority be? How will unutilised money in the compensation be shared?
Despite the strong mandate, Modi still faces a struggle to implement reforms to boost growth and jobs.
There’s very little sensitivity being shown in forcefully shoving India’s small traders and producers into the formal economy. To what extent will this affect the BJP’s support base?
The finance minister’s announcements on moving towards a more progressive direct tax structure and tax incentives for MSMEs are heartening.
The consensus was reached after the Centre agreed to the demand of the states to go in for a horizontal split with regard to taxpayers based on annual turnover.
While Arun Jaitley talks of increased tax collection, banks are battling historically-low credit growth and small and medium businesses are staring at drastically decreased revenues.
Large companies have begun their ground work, but small and medium enterprises don’t seem ready for the new tax regime.
While the army was able to conduct surgical strikes across the border and undertake relief operations during the Chennai floods, India’s bankers have been unable to rise to the battle cry in the aftermath of demonetisation.
Ease Of Doing Business and Paying Taxes: How To Jump a Hundred Positions On the World Bank’s Rankings
If India can bring down the total number of payments to 10 and the total hours to comply to 160, even without changing the total tax rate, the ‘paying taxes’ rank could jump by over a hundred positions to the 60s.
Direct tax reform is necessary to ensure that implementation of the GST doesn’t contribute to stagflation.
A refusal to change our traditional adversarial approach to governance has the potential to hold GST reform hostage. This should not be allowed.
The passage of the bill will pave the way for setting up of a GST council that will decide the tax rate, cess and surcharges.
An early winter session would help get the Central GST and Integrated GST legislations approved, that will pave way for the GST, to be approved within November or latest by early December, government officials said.
There has been no attempt so far to design a comprehensive tax policy for medium and small enterprises, which would take all direct and indirect taxes into account and provide a clear, low-compliance-cost, fair policy option.
Perhaps Jaitley was not over-pitching when he argued that “the whole concept of the GST Council is Indian federalism at play in the best possible mode”.
State governments are elected to make difficult moral decisions on how to pay for priorities and transform society – an ability the GST destroys.
The bill was easily passed, with the Congress Party coming on board, after the government made about six changes including scrapping of 1 per cent manufacturing tax and incorporating clearer provisions for the compensation of states.
The passage of the GST bill through the Rajya Sabha will be a political, and not economic, success. The real task of implementing it still awaits us.
If the Centre needs to adopt a sensitive and reflective approach, the states too need to realise that they are not just competing amongst each other but also face global competition.
In its current form, the GST will have a negligible positive impact on growth, may be negative for the business environment, and may not even be revenue neutral.
A poorly implemented GST could be politically counter-productive. Which is why we should not treat it as a panacea, but as an instrument that may have to be refined in the coming years.
Union minister M. Venkaiah Naidu reached out to Congress leader Ghulam Nabi Azad ahead of the monsoon session, which starts on Monday.
The most vocal campaigner is Rajya Sabha MP Subramaniam Swamy who has publicly said Raghuram Rajan must be removed
Rather than give big business tax breaks, the FM and his new budget should simplify taxes for SMEs, enabling them to better contribute to growth.
Kolkata: What the Congress used to do with the Bengal unit of the party, the BJP is now doing to its parivar in the state. With one eye fixed firmly on the safe passage of bills in the Rajya Sabha, the BJP leadership is wooing the Mamata Banerjee-led Trinamool Congress, causing […]
The Prime Minister can do no better than to follow the advice of Barack Obama and Jawaharlal Nehru
New Delhi: A united opposition is set to corner the government over the issue of intolerance in the winter session of parliament beginning tomorrow but the prospects of a thaw on the crucial GST bill brightened with both sides expressing preparedness for discussing it. The opposition is likely to […]
The recent executive decisions announced on the economy did not need legislative support and Modi has only himself to blame for the delay in taking them.
The Prime Minister will be under tremendous pressure to create a broader climate for faster economic growth. So far, his ego has come in the way of personally reaching out to opposition leaders like Sonia Gandhi.
12 convicted for 2006 Mumbai train blasts Today, a special court held 12 people guilty of planting the bombs that exploded in the first class compartments of Mumbai’s local trains at rush hour on the evening of July 11, 2006, killing 189 people and injuring more than 700. […]
The fear of losing the Bihar elections is such that the government has dropped one of its key pieces of legislation. But will this impress the voters?
The Congress leadership never dreamt that Modi would make so many critical mistakes—the land bill for one—within a year of coming to office.
Finance minister Arun Jaitley has charged the opposition, especially the Congress, with deliberately hurting economic growth by blocking the GST bill for “purely political reasons”. Jaitley has further asserted that the Goods and Services Tax (GST) is getting blocked largely because of the obduracy of Sonia Gandhi and […]