The GST jumla, another massive fraud on the nation
GST is a massive scale fraud on India which will have extreme repercussions. People have taken in the government propaganda lock stock and barrel. They think that this is a great reform and will bring about everything from lower prices to reduction in income tax. Nothing could have been further than the truth.
Consider the following:
The book keeping requirements in GST are quite exacting. Therefore, all small and big businesses will have to hire services of small and big accountants. This will lead to higher administrative costs and hence inflation.
Many clauses introduced through back door by Jai Italy. The biggest and the most draconian clause against small businesses is this:
Those who will buy from an unregistered vendor will have to deposit 18% tax on the vendor's behalf. And this will not be adjustable / refundable.
This is the problem point. People will either:
1. Stop buying from unregistered vendors. Who will take on the small vendor's burden at the cost of competitiveness and profit? In which case, the unorganised sector which is the biggest employer, will be badly hit and squeezed.
2. Or the unregistered vendors will be outsourcing their GST activity to someone else, in which case there will be escalation of costs and squeeze on profitability.
This seems like the perfect economic weapon to prevent 56 inch from getting re elected. I am no fan of his, but I don't want my nation ruined.
Anyone wishing economic stability and 56 inch's re election should be extremely concerned. Remember that the election is about 2 yrs away.
Lesser important but equally serious points:
1. Are we going back to inspector licence Raj? It seems so. The tax commissioners have been given great powers.
2. Does the government want traders to give higher priority to book keeping than their core competence of trading?
3. Why does the government want to smother an economic recovery after the failed demonetization experiment?
4. Why is the government acting as an enemy of the nation by affecting profitability and competitiveness of small businesses?
5. Why is there no relief for the common man from the spiralling burglary in the name of tax?
6. Isn't it clear that many rural areas don't even get electricity. For the government to expect a trader there to not only learn computer, but to the extent of filing three returns every month is simply atrocious. He is left with no other alternative either. If he has to hire the services of an accountant, his profitability will be affected. We are on our way to making a country of accountants.
Consider the following:
The book keeping requirements in GST are quite exacting. Therefore, all small and big businesses will have to hire services of small and big accountants. This will lead to higher administrative costs and hence inflation.
Many clauses introduced through back door by Jai Italy. The biggest and the most draconian clause against small businesses is this:
Those who will buy from an unregistered vendor will have to deposit 18% tax on the vendor's behalf. And this will not be adjustable / refundable.
This is the problem point. People will either:
1. Stop buying from unregistered vendors. Who will take on the small vendor's burden at the cost of competitiveness and profit? In which case, the unorganised sector which is the biggest employer, will be badly hit and squeezed.
2. Or the unregistered vendors will be outsourcing their GST activity to someone else, in which case there will be escalation of costs and squeeze on profitability.
This seems like the perfect economic weapon to prevent 56 inch from getting re elected. I am no fan of his, but I don't want my nation ruined.
Anyone wishing economic stability and 56 inch's re election should be extremely concerned. Remember that the election is about 2 yrs away.
Lesser important but equally serious points:
1. Are we going back to inspector licence Raj? It seems so. The tax commissioners have been given great powers.
2. Does the government want traders to give higher priority to book keeping than their core competence of trading?
3. Why does the government want to smother an economic recovery after the failed demonetization experiment?
4. Why is the government acting as an enemy of the nation by affecting profitability and competitiveness of small businesses?
5. Why is there no relief for the common man from the spiralling burglary in the name of tax?
6. Isn't it clear that many rural areas don't even get electricity. For the government to expect a trader there to not only learn computer, but to the extent of filing three returns every month is simply atrocious. He is left with no other alternative either. If he has to hire the services of an accountant, his profitability will be affected. We are on our way to making a country of accountants.
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