GST is going to kill the traders and the middle class says experts.
GST is now applicable in India and our PM has said it will bring a new sunrise in the country but the reality is far from it, in a poor overpopulated nation like India it will prove fatal for the people specially the small and middle class traders. The only thing it’ll do is to fill the pockets of the government by sucking out our hard earned money.
What the Experts feel?
Like the Demonetization which led India’s economy to touch the base as 8 core sectors are suffering an all time low productivity and the GDP also has gone down like an uncontrolled kite, this GST is also a good idea with a very bad implementation.
“We have a very difficult period ahead of us. Because we have a popular government and a popular leader who is ideally placed to take us into confidence” – Aakar Patel, Executive Director, Amnesty International India.
“The chartered accountant in me says it is a self-goal for all businesses — from large, medium to small.
If my understanding is correct, one has to file not less than 37 returns per year for every ordinary business, and that too per state. If you are doing businesses in Chennai, Bangalore and Hyderabad, you have to file 37×3 returns every year!
The problem is, if something goes wrong, the GST assumes that it is a wilful default. So, my worry is people can be held ransom for even a simple mistake, by the revenue department.
If the clerk in any organisation makes some mistake while uploading the information, the owner will be held responsible, and believe me the consequences are draconian.
And that in my opinion, will breed corruption. Alternatively, every businessman will be expected to pass the agni pariksha of the tax administrator and then only s/he will be declared clean.
So my worry is, in the first two years, there is going to be huge number of mistakes out of misunderstanding or lack of understanding. The consequence will be chaos, confusion and possibly economic crisis” – M R Venkatesh, a chartered accountant and political analyst.
Mr. Venkatesh further adds that,
“It is going to be tax Jihadism. Terrorism is a mild word. I would say lawyers and chartered accountants are going to benefit and society is going to suffer”.
“In developed economies like New Zealand and Australia the introduction of GST does not seem to have hurt economic growth; but in lower income countries like Nigeria and Malaysia, GST does seem to have cramped consumption by increasing the sticker price that the consumer has to pay.
This negative impact on consumption then dampens GDP growth. It is, therefore, quite astonishing that in a low-income economy like ours will have GST now” – Saurabh Mukherjea, CEO, Institutional Equities, at Ambit Capital.
Everything has some positives and some negatives in it but GST, which is not a complete one in India looks more negative than positive. We hope GST is not only a government’s gimmicky over publicized self-goal to increase their personal revenue in the form of an organised loot and it will benefit the common mass of the country.