AIR News spotlight summary – 5th Nov 2017

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AIR News spotlight – 5th Nov 2017

Government Measures to effective implementation of GST and Benami property transaction acts

Q: Prime Minister Mr. Modi has clearly indicated now whatever the problem left in the GST implementation, which have, creating trouble for small businessperson and also those who have Benami property they will targeted now and now they will tackled in the next phase. This clear indication it shows the government has the things in mind that not only GST council will go ahead make though changes, which are necessary to improve implementation of GST. But fight against black money is going to continue and government will leave no stone and turn to utilized the window provided which has in Benami property act to basically target and tackled those who have utilizing the particular aspect in the economy or law create unaccounted wealth. First of  all the government came out with demonetization November 8 in last year that also a step it was seen as big step towards curbing back money in the economy and bringing a word digital economy and also targeting those who are keeping high demonetization note in terms of unaccounted wealth. That was first step to curb black money, second step was GST once GST implemented in proper manner it bring lots of transparency it will cover more and more businesses and it will also force people to pay tax which were now out of pay tax. Third major Prime Minister announced hinting could be biggest one of utilizing the window of Benami act to tackle those property know which have been creating in the name o others by big business man and others who have money. This three things step together move to big way forward in terms of curbing black money in the economy.

Demonetization was the first steps taken by prime minister the drastic steps to curb black money in the economy. Demonetization is meaningless unless digitalization of economy. So starts cashless economy. The government starts Benami act, comes out Benami act 2016 then it start with present one GST. Then what I said it is this consistent effort to control black money in economy, which act it as dement against the low-level income holder, genuine taxpayer, against those who are really far the economy as whole. What I say here is that when we talk of this consistent effort starting from demonetization to Benami, GST. What I saying that the government with the direction ,it is not direction ,direction with conceptive approved to control black money real also they were recommendation of Rai committee there should be demonetization but it was not applied because of lack of political will. Ultimately it has left to positive result which have seen in UP. After that what we have seen that left cash economy, another conceptive move after we have seen is Benami property which huge net shelf, which goes beyond the market value , 4 lakhs companies is termes as fixed companies now want to see extender of those black money ,GST, Benami. These all are steps approved to control black economy in the country.

Q: See the good part when the government is taking these moves bold and challenging more its keeping an open mind whatever in the implementation part whatever the need to change, need to amended the provision. It is going ahead and doing it especially in GST. GST council meets several times in the past few months and come out with solution those who facing problems for exporter. Its comes out with several scheme to clearing refunds in speedy manner and also e-wallet scheme so they are money already in the wallet they could be using that particular amount for walking capital but it will come next one year.

This is kind of things GST council has been doing and then the composition in the scheme for these all-small businessperson. He could not want to pay in the tax rate 5%, 12%, 18%, and 28%. They will pay less 1%, 2%, of 5%. That composition scheme has been also brought and bring implement in manner it is less difficult for traders then for return filing also those who turnover 1.5 crore. Now will filing quarterly returns composition scheme limit has increase 75 Lakhs to 1 crore. All these things are been happened along with the rate was changed for several commodities where it was benching the pocket of consumer and businessperson who dealing it. PM said the next GST council meeting is there next week, this indicates several other commodities in the top rate 28% they will be brought down to lower rate and the impact of the tax and hot chips tackled.

Q: Finance Minister Arun Jaitley also indicated government of GST also willing to merge at least 12% and 18% rate going ahead some point of time, and indicated in the 28% commodity bracket like cement etc. there is might brought down so that business man face problem there the system have a situation where they can work properly. The government keeping a open mind as for implementation of GST this concern. Which are the areas do you think GST council meeting going ahead in centre and state together should bring step in those area to tackle the hot chips of business?

First, I would like to add one thing more to it. The Government has to keep an open mind because India is democracy country. We have different state government and different political ideology so one rule if they adamant and failure of concern. If flexible, it is big advantages. PM said more than one the thing could be change as when come to the four. I feel this flexibility adds value to the GST council thinking. There are the areas, which are common use and have come in the weight, which is high level, take the case 28% commodity like cement, iron rod so far. This is the item for common person in India. Therefore, this need to be incorporated at the same time some genuine problems from business people who are dealing micro and small unit. It was tally system. They have shift enough to GST tally system it will be centre GST or state GST inculcate with in state, across the state, there is a different set up. Therefore, there should be shift from one set up to another which involves the certain cost, person not understanding the benefit of GST. First, train the people according to GST methodology. Therefore, it required sort of cost and small & medium business unit need to be take consideration, return filing how it is file and where it needs to file, which is state tax and central tax. Common person, Businessman etc, should accept rate.

Q: We need to take any new step to curb black money.

No, effecting implementation existing scheme is enough to curb black money.

Exercise questions:

  1. What are the various legislations taken to curb parallel economy in India?
  2. What are the major challenges in implementing GST in India?

 

 

 

 

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