GST has not been formed by the ideal system, the Policy Commission has explained many thingsJune 30, 2018
new Delhi. Considering GST as the largest reform program of independent India, it is being said that this has made the same tax system simplifying the complex direct tax system of the country. GST is completing one year on June 30. It is being said that the complex tax system has been exhausted in India and a tax system has been created in addition to more than a dozen different types of taxes and many cesses. But GST has not been able to make ideal arrangements till now.
The GST’s 1 year journey was not easy, and the problem and problem remained on the very first day. Though some flaws were resolved due to the activism of the government, some problems like simplification in filing returns and rationalization of taxes have not yet been resolved. According to Rajiv Kumar, Deputy Chairman of the Policy Commission, “GST has now set up a separate model in the economy, because people will have more pressure to register under GST and bring their economic activities to the formal sector.
Instead of analyzing the GST one-year journey, it would be more important to understand the future plan. Many economists argue that there should be universal coverage and single tax system in the ideal GST system, while most people would agree that it is not practical for a country with a major economic inequality like India. The government also has often said that there should not be a uniform tax rate on the BMW car and the slippers.
6 rates of tax in GST are 5, 12, 18 and 28 percent. Apart from this, the tax rate on some items is zero, then three percent tax has been imposed on gold. In this way, India’s tax system is the most complex in the world. This matter has been acknowledged by the World Bank in its India Dependency update in its half-yearly report. According to the report, the worst scenario is that petroleum production, electricity and real estate have been kept separate from the GST.
The World Bank said, the number of taxpayers in India is not the biggest, but the highest rate of GST in Asia is 28% and the second highest rate in the world after Chile. Soon after the implementation of the new indirect tax system, the member of the Policy Commission and President of the Economic Advisory Council of the Prime Minister Bibek Debroy said, “India is far from ideal GST system and it will not become ideal in the near future.”
With the technical flaws in the GST network portal since the first day of GST on July 1 last year, taxpayers faced difficulties in registering it, due to which the government had to increase the deadline to file returns several times. Due to these flaws, the export refund increased considerably and the exporters had a cash crisis as their capital was stuck.