APPEAL TO ANNA JI
- GST TO END CORRUPTION AND IMPROVE INDIA -
Respected Anna ji,
I salute you and your team for your efforts, which have resulted in a consolidated Nationwide action against the levels of corruption existing in India. I think your Gandhian ways and means have hit the Bulls eye and in this satyagraha, India will be relived of its major vices (Corruption & Political interests).
I join my hand with you in this task for Nation Building. One of the major steps that Government would take is implementation of GST Law in India. This law was proposed to be introduced in India way back 1st April, 2010, however to this date it is being pushed ahead again & again. Government does not have any consensus on implementation of GST. This action of Government is hampering the Indian Economy.
Now Anna ji, I will give you a short glimpse of GST and its benefits that our country will witness. GST will subsume all the indirect taxation like VAT, Excise, Service Tax, property tax. GST will help India in following manners:
1. Reduce Corruption in Real- Estate Sector
Real estate is subject to multiple taxation at both levels of Government. At the State level, input tax credit is not available for all taxes, thereby leading to significant cascading effect. Further, there is no incentive to the purchaser to obtain an invoice. Consequently, the audit trail of such transactions is lost and producers of inputs are also encouraged to suppress such transactions. The cumulative effect is to incentivize transactions in black money. With the introduction of GST, such incentives will be no longer available and hence it will bring the money in legitimate channels.
2. Evasion of sales Tax in Inter-state transactions
The intra and inter-state rates of tax should be equal to avoid evasion and camouflaging the intra state transactions as inter-state transactions. These acts of producers impact the tax collections and de-benefit the government. With the implementation of GST Intra and inter-state transactions would be pegged at par.
3. Increase in Income of India
With the implementation of GST across all goods and services, India’s Yearly GDP is expected to increase somewhere within Rs. 42,789 crore and Rs. 83,899 crore, respectively. Thereby earnings of India will increase by atleast Rs. 42,789 crore.
4. Production of more Goods
Output of sectors including textiles and readymade garments; minerals other than coal, petroleum, gas and iron ore; organic heavy chemicals; industrial machinery for food and textiles; beverages; and miscellaneous manufacturing is expected to increase.
5. Increase in Foreign Currency earnings
Exports are expected to increase between Rs. 24,669 crore and Rs. 48,661 crore. Thereby we can increase our foreign currency reserves by more than 24000 Crore every year.
I draw your attention towards the pending GST Constitution Amendment Bill, 2011 in parliament. Implementation of this Bill will give a solid ground to work for JANLOKPAL BILL. Eradication of corruption will need successful implementation of GST, which currently is lacking political will.
CA. Rajat Mohan
(ICAI -Membership no. 513103)
B.Com(H), A.C.A., A.C.S., D.I.S.A.
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