Eye-opening World Bank report on GST in India

There should be one consolidated monthly GST-return rather than too many presently

It refers to recent World Bank report which has established GST in India to be amongst complex-most with extra number of tax-rates amongst all about 115 countries in the world where GST system is applicable. GST regime implemented from 01.07.2017 needs to be totally overhauled by time-bound 01.07.2018 where after Goods and Service tax may really become Good and Simple Tax.

Present tax-rates of 0, 0.25, 3, 5, 12, 18, 28 percent with even more complicated addition of cess that too with petroleum products and some other commodities and services exempted should be revised mainly with just two slabs of 10 and 20 percent with service-sector placed in 10-percent slab. People presently lured with gimmick 0-percent GST on some commodities will feel much more relieved by huge reduction in other slabs to be restricted to 10 and 20 percent only. Any further anticipated revenue-loss by introduction of two-slab formula can be cut by abolition of Input-Credit-Tax (ITC). However if revenue-loss by way of abolition of cess on certain commodities is quite high, then special tax-rates in multiples of 50-percent may be there but only on commodities attracting appreciable revenue.

There should be one consolidated monthly GST-return rather than too many presently. However mechanism may be developed whereby traders may have to voluntary though under compulsion may have to issue GST invoices without being insisted or even asked for by customers.

source:https://kashmirobserver.net/2018/letters/eye-opening-world-bank-report-gst-india-30190?utm_source=trending-front

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