And for a Friday of the Historic GST Bill…. Some thoughts…
After the 1991 reforms, this is probably the biggest. All indirect taxes of the Central Govt – Central Excise, Addl. Excise, Service Tax, CVD etc. etc. will be subsumed in the Central GST and State Sales Tax, Octroi, Entry Tax, Purchase Tax, Luxury Tax etc. etc. into State GST.
For the middle class, you and me, well we will have to further tighten our purse strings. Alcohol, Tobacco and possibly Petroleum products are out of the list. Service Tax will probably hit the highest Median – means your Restaurant bills, Mobile phones and almost all services will go up. But Electronic goods and Capital items will come down.
It’s not the tax amounts. The significance is, One India One Tax would mean a lot of automation, use of Technology Central Computer systems, Tax compliance will be faster, easier and less costly.
More than 60,000 Central and State Revenue officials will be trained on GST and IT Infrastructure framework along with technical and legal aspects. Hope they include training on how to enforce the new laws with a “New Mind Set” – different from what Sales Tax and other tax collection agencies are known for.
Ethics and ‘No Corruption’ will easily make India a far better place to do business… the SEEGOS way.
All this will take time. One year, two or even more. Well, your guess as good as mine.