New Delhi: SIO of India organized a discussion on GST with M.K. Venu (Founding Editor, The Wire) at its headquarters. The discussion with the brief introduction of economics and focused that GST eliminates the cascade system of tax from India,it is not a new concept, but already suggested before by other governments but the ruling power which was in the opposition condemned it strongly.
India is not the first country to apply GST, its being implemented by other countries which are having GST’s system suited for them. All the countries have lower tax rates, and India has highest with tax rate as high as 28%. Also, lower rates of GST would have made it far more effective and it would have been a revolutionary decision. It could be a Good and Simple Tax but at the movement it is not, we can say it is half baked, said Venu.
Venu continued saying, different tax rates in GST like 5%, 12%, 18% and 28% and compared them with the different aspects and future plans of the government like low rate housing and fertilizers for farmers. He said that when the VAT (Value Added Tax) for the different states were started, the country would be through a whopping increase in GDP up to 8.5 and all the stars welcomed that decision but now in the case of GST the situation is totally different. Demonitisation has affected the economy very badly , now we have to see how much GST works for the development of India’s economy without effecting the poor and middle class of India also this required that all the States have to maintain their revenues.