Voice from the Rooftop

Blog of Vincent Augustine D'Souza

GST

GST came into effect on 1/7/2017. It is not One Nation One Tax. It has taken over or done away with 17 taxes including Amusement and Entertainment Tax (except levied by local bodies), Excise, Additional Excises, Octroi and Service Tax. Other taxes continue. GST has different tax rates for different goods and services and with cess added the tax rates may be forty even though the government claims there are four tax rates – 5%, 12%, 18% and 28%. For Coca Cola the tax is 28% + 12% cess making it 40% tax.
GST has been good for chartered accountants and tally programmers. Their demand and income has gone up. Octroi is abolished. It is good for traders and transporters. In some restaurants customers received bills with Central GST and State GST.
There is confusion about rates. Some have raised questions about rates. Cashew nuts are charged 5%. Almonds are charges 12%. Almond merchants say almonds are nuts so rate for cashew nuts and almonds should be same. By that they mean 5%. Such disputes are good for lawyers.
Some traders have not used computers. They are unable to comprehend GST. They will need services of professionals.
Some say GST has brought more work. Previously, it was a Quarterly Return. Now it is three Monthly Returns and an Annual Return.
Textile was free from tax. Now it is 5% GST on cotton and 18% GST on man-made fibre. In Surat textile traders are on strike. In Maharashtra, especially in Bhiwandi, many power looms have shut down.
Many women are opposed to 12% GST on sanitary napkins. Government has justified the tax on the ground that previously there was excise and VAT on sanitary napkins which is equal to 12% GST and women did not know about it.
Car companies decreased the prices of cars after GST came into effect. Maharashtra Government increased Motor Vehicle Tax.
Banks had Service Tax rate of 15%. GST is 18%.
Some shopkeepers have problems because their buyers do not accept their receipts. They want receipts in a different format.
Confusion and uncertainty should be over within three months.

Updated: July 11, 2017 — 7:38 am

3 Comments

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  1. We will have to wait for some time to see the real impact…

  2. Informative post Vincent. Chartered accountants will surely have an increased demand.

  3. Informative post Vincent. Chartered accountants will surely see a great demand for themselves.

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