The GST philosophy was based on seamless credit not only of all taxes but all taxes used for business without restriction. This is not so.
The GST model law as it stands is a disaster- totally loaded against the honest tax payer- too cumbersome for the SMEs. Needs a major surgery.
It appears that the GST maybe ushered in by April 2017. Industry, Officers, and Professionals need to be aware to meet these challenges. A brief write up.
The Indian tax laws have evolved over period of time to become complicated due to the existence of the parallel economy, complicated laws, high rate of multiple taxation, large scale corruption in the State VAT administration and to a lesser extent i
Free and full credit of tax paid at earlier point is the key to success of GST. Maybe not to be?
The big eat the small. Under GST the death kneel for small businesses in the form of Composition scheme and elaborate return requirement if not in.
Collecting taxes before they are due is unfair to tax payers- practice continued under GST
Chanakya in his arthashastra said- do not pluck the fruits before they are ripe. Revenue dept- has been doing this for some time
GST Law needs to be simple and not restrictive. Tax to be collected like bee collecting honey.
Understanding the meaning of supply is important to be able to appreciate the GST Law as all supplies are taxable.
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