Hari Seldon wrote: ↑Thu Oct 05, 2017 3:53 pm
>>sonia singhVerified account
@soniandtv
Breaking on #ndtv9, major review likely in GST rules, monthly returns could be made quarterly, rate reduction in some sectors likely
Interesting. If this is true (and I'm not going to take ndtv's word for it, then its a big plus. Means Modi saarkar has its ears to the ground at least on economic matters and is being responsive.
Also means that lobbying and pressure-building by affected parties isn't entirely futile. If there is indeed a genuine case tobe made, chances are it will get a fair (hopefully) hearing.
Of course flip side is that if the GST was indeed designed to be revenue-neutral, then how will this above move affect things? No way one can get it right in first go, small changes and tinkering, experimentation and incremental changes are the way to go.
If Good and Simple Tax switches to quarterly return, then GST will collapse
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Say A sells goods to B for say Rs 1000 + 20% GST = Rs 1000 + Rs 200 = Rs 1200
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Then B sells goods to C for say Rs 1050 + 20% GST = Rs 1050 + Rs 220 = Rs 1270
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Now as per Central GST act clause-16.2.c, as printed by Shri Modiji , B will NOT get input credit unless A pays Rs 200 and A uploads his returns !!!
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(And as Central GST act clause-16.2.c, as printed by Shri Modiji , B will have to pay Rs 200 AGAIN in A refuses to pay !! This is called "Missing Trader Problem" , or "Buyer shall bear the burden of Missing Trader" and is central FEATURE of Shri Modji's GST act !!!)
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That why system of monthly return was created. So that B can know within 35 to 60 days whether A has actually paid rs 200 or not
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Now if returns will be filed in 90 days, then B may have to wait for 90 to 120 to 180 days to know if A has actually paid Rs 200 or not !!
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IOW, GST is BEYOND REPAIR. If you make return filing monthly, then small traders die. And if you make return filing quarterly, or yearly then "Missing Trader Frauds" grow which will again kill small traders big time.
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So let sanity prevail. Pls google more on "Missing Trader Problem". Pls read Central GST Act clause-16.2.c. And pls see that GST is UNFIXABLE !! Whereever GST went, small businesses collapsed. One reason why USA has far far more mall business and small manufacturers is because USA doesnt have nonsense like GST , excise, vat, service tax and has limited sales tax. So lets kill GST (and also kill excise, service tax, vat, cst etc) and instead fix income tax and wealth tax.
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Here is what Shri Modji and RSS-workers have printed in Central GST act , clause-16.2.c --- see
http://gstcouncil.gov.in/sites/default/files/CGST.pdf see page-19 .
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" INPUT TAX CREDIT
16. .... (2) Notwithstanding anything contained in this section, no registered person shall be
entitled to the credit of any input tax in respect of any supply of goods or services or both to
him unless,–– ...... (c) subject to the provisions of section 41, the tax charged in respect of such
supply has been actually paid to the Government, either in cash or through utilisation
of input tax credit admissible in respect of the said supply; and (d) he has furnished the return "
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IOW, ONLY after seller has paid GST and seller has submitted return , BUYER will get input tax credit.
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So if returns become quarterly, then buyer will not know for 90 to 120 to 180 days whether seller actually paid taxes and seller has filed return.
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[rant ON] But why bother with all these DETAILS? Details are for morons !!! Lets shout Vande Mataram !! Lets shout Baharat Mata ki Jai !! Lets all declare all who oppose Modiji's Good and Simple Tax as traitors !!! [rant STILL ON]