{"id":1269,"date":"2016-01-13T08:46:00","date_gmt":"2016-01-13T08:46:00","guid":{"rendered":"https:\/\/taxolegal.com\/gstblog\/?p=1269"},"modified":"2021-12-02T08:48:58","modified_gmt":"2021-12-02T08:48:58","slug":"gst-the-other-side-of-the-coin","status":"publish","type":"post","link":"https:\/\/taxolegal.com\/gstblog\/index.php\/2016\/01\/13\/gst-the-other-side-of-the-coin\/","title":{"rendered":"GST: The Other Side of The Coin."},"content":{"rendered":"\t\t
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Whenever we talk about a new tax reform GST, we need to know how\nprepared we all are to receive it and adopt the same. When we speak about\npreparedness, we mean preparedness at various levels. At the level of a\nManufacturer, Trader, Service Provider, Departmental Officers, Consultants,\nBanks, Judiciary, Industrial Associations, Tax Professionals and Public at\nlarge \u2013 the common man. Let us see the other side of the Coin-The True picture.<\/span><\/o:p><\/span><\/p>

The Common man, who does not have any say whatsoever in this whole\nprocess. The Common man who is expecting the world to change once GST comes.\nThe common man who has been promised so much that even if he believes half of\nthem to be true, still he feels alienated and sees him in seventh heaven. There\nhas been a buzz that the prices will come down once the GST is introduced.\nHowever things may not be as rosy as expected. The reality may be different\nthan what we all perceived initially. The moot cause for the same is 18 to 20%\nGST rate of Tax. We all know that the service sector contributes to more than\n64% to the GDP and more than 90% the new businesses, the so-called startups are\nfrom the service sector. Our manufacturing sector hardly contributes to the\nGDP. Even if you expect the GST rates to be a modest 18% it translates into a\nrise of 4% from the existing 14% Service Tax rates and this is effectively 29%\nincrease in revenues for the governments from the service sector.<\/span><\/o:p><\/span><\/p>

Last year the total collection of taxes for Service Tax was\napproximately Rupees 2 lakh Crores. In other words, the total tax levied in\nthis new tax reform – GST will be around 18% instead of 14% and the same will\nbe concurrently levied by State and Centre both. For example 10 percent CGST\nand 8 percent SGST. Thus the total tax collection may increase to 2.5 lakh\ncrores. The estimated tax collections of the all the states from GST on account\nof Service Sector will be whooping one Lakh Crore in excess to what they are\nalready collecting from VAT and other taxes. The question arises as to who is\ngoing to take the burden of this extra 50 thousand crores. As in every indirect\ntax, here too the sufferer is the ultimate consumer and common man who will be\nthe last in the chain of events and will be bearing all the tax burden. One\nfails to understand this mathematics as to how the prices will come down if 64\npercent of our GDP is from Service sector, the overall prices may see an upward\ntrend. Till few months back the Revenue neutral rate RNR was said to be in the\nrange of 25 -27 percent. However, the recent studies say that the same in less\nthan 18 percent. One wonders as to whether it\u2019s pure allied mathematics or\n\u201cpolitico-maths\u201d under the influence of a rough weather session what we all saw\nin the parliament since few months. The economist need to address this area.<\/span><\/o:p><\/span><\/p>

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It is also to be seen how prepared the state and Central\ngovernment offices are as well as how prepared the professionals and\nconsultants are to receive this new tax Reform which will be the biggest of the\ntax reforms since independence. As for the common man, he never had any say nor\nwill ever have in all such processes and are unaware about the other side of\nthe coin.<\/span><\/o:p><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Whenever we talk about a new tax reform GST, we need to know how prepared we all are to receive it and adopt the same. When we speak […]<\/p>\n","protected":false},"author":1,"featured_media":576,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"disabled","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"uagb_featured_image_src":{"full":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"thumbnail":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",150,90,false],"medium":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",300,180,false],"medium_large":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",768,461,false],"large":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"1536x1536":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"2048x2048":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false]},"uagb_author_info":{"display_name":"admin","author_link":"https:\/\/taxolegal.com\/gstblog\/index.php\/author\/taxol_amyas2u3\/"},"uagb_comment_info":0,"uagb_excerpt":"Whenever we talk about a new tax reform GST, we need to know how prepared we all are to receive it and adopt the same. When we speak […]","_links":{"self":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/comments?post=1269"}],"version-history":[{"count":4,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1269\/revisions"}],"predecessor-version":[{"id":1273,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1269\/revisions\/1273"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/media\/576"}],"wp:attachment":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/media?parent=1269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/categories?post=1269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/tags?post=1269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}