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The marathon race which was conceptualised in 1978 in the Jha Committee report underlining the importance of GST for India is reaching the last mile in 2017- a period of 39 years!!!

Any landmark reform cannot be 100% favourable to all sectors/stakeholders. The purpose of GST was as under with assessment of what it may achieve in the way it is drafted and expected to be implemented:


Possible Impact (-10 to 10+)

Integrate to World Economy


Bring down cost of most products


Bring down cost of services


Bring down cost of essentials for poor


Increase Tax base by 25%


Curb Bill trading (fake bill racket)


Increase GDP by 1%


Increase Export competitiveness


Common Market – no tax distortions


No of rates (100+ to 5)


No credit of IDT- luxury, CST, Octroi etc


Reduction in Rampant Corruption


Simple law


Fair Law – ease of business


Transparency of tax administration


Electricity, Immovable property, 5 petroleum products - out


Honest Tax payer - reward - provisions


Action on 300 + suggestions on Model Law of November 17 - not considered


Anteriority of law ( advance public comments)


Note: All ratings are the personal view of the paper writer and can at best be considered a guesstimation. Some important aspects where information not available have not been commented on.

On the whole GST would be a boon inspite of the issues above rated in negative.

It could be wonderful if the following actions were taken to ensure that it is:

A. Bring in industry and experts groups to suggest amendments to law + rules which should be considered without exceptions. Suggestions not accepted put in public domain.

B. Consideration of 300+ valid changes made in the last 3 months from industry, trade and professional bodies.

C. Changes made whole sale rather than piecemeal like Company's Law.

D. Procedural relaxation for all businesses upto Rs. 100 lakhs. Nil denial of credit for 1 year only intimation of non-matching.

E. No penalty for bona fide mistakes which are likely to be there in millions.

F. Specific provisions to safeguard/ reward the compliant and punish the errant officers. (present law is unduly harsh on the tax payers)

If GST misses the deadline due to any reason, the nations would be the sufferer first and then the youth who are hoping that the demographic dividend which can only come with the economy growing fast and near 100% employment. Let us unite to hope for ushering in better times.

Entire law analysis + FAQ + Web cats of Model Law is available at = all free for anybody- officer, public, industry/ trade/ professional.  


Published by

Madhukar N Hiregange
(Chartered Accountant)
Category GST   Report

1 Likes   9 Shares   7038 Views



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