Industry sees India hitting 10% GDP post GST rollout

[Jlaw]

The implementation of the current GST was one of the best things that ever happened in Canada, It replaced taxes that were applied to manufacturing and made our industries much more competitive.

I know thats what the politicians tell us, but the ground reality, is it true? Canada is losing it's competitiveness due to high taxes whether corporate or provincial. But let's not derail the thread about Indian GST.

 

[Abingdonboy]

@Jlaw

 

[Abingdonboy]

@Jlaw

 

[pakdefender]

GST is , by any definition , an indirect form of taxation so it's not a departure from indirect form of taxation.

This is generally done to indirectly bring more people into the the tax net.
Since it will be applied uniformly ( not as a percentage of household income ) , it affects the poor the most

Nothing good will come from this , just typical modi spin

 

[proud_indian]

This is a two year old video

Post GST, GDP will go up by 2% from next day: Adi Godrej

 

[pakdefender]

basically means indians government will now be able to indirectly extract money from more of its citizens

 

[Dem!god]

basically means indians government will now be able to indirectly extract money from more of its citizens

basically it means, the whole nation will have a single indirect tax, both for center and state. lowering the cost on most of the consumer goods and products.

 

[proud_indian]

basically means indians government will now be able to indirectly extract money from more of its citizens

How do you come to this conclusion?

Would you please care to elaborate?

 

[AugenBlick]

Sure, we tried that but it didn't work as each region's economic prosperity differed in Canada.

Agreed. This definitly needs further tuning but the system we have now is even worse

 

[Jlaw]

@Jlaw

I'm just saying that we already seen this type of promo by the government in Canada decades ago. I guess Modi is just using this to prop up GDP % through spending.

 

[pakdefender]

basically it means, the whole nation will have a single indirect tax, both for center and state. lowering the cost on most of the consumer goods and products.

A person who earns 1000 rupees will pay the same GST on everyday items like petrol , food items , phones etc as a person earning 10,000 rupees... that puts more pressure on the low income groups , it's not proportional tax

Yes the government will be able to show that it has more money in its bag at the end of fiscal year but overall this is not good for low income group , who will slowly but surely get shafted as a result of this

There is no transformation here , GST is indirect taxation , it is just a way of taxation on the low income groups who tend to part of the "undocumented" economy and out of the tax net

 

[Crixus]

They have HST too and that sucks too

I guess we can all wait to see. Canada has GST and it sucks. Most hate it.

 

[proud_indian]

GST will completely transform India's tax structure: Shaktikanta Das
Economic Times‎ - 15 hours ago
In an exclusive chat with ET Now, Shaktikanta Das, Economic Affairs Secretary, Finance ...



Shaktikanta Das expects for 1.5% rise in GDP after implementation of GST

Published on Aug 4, 2016
Shaktikant Das expects for 1.5% rise in GDP after implementation of GST. Watch complete news story of Hot Stocks for getting detailed updates!

 

[maverick07]

yes........ agreed like all indirect taxes......... but it will widen the tax net which can boost the revenues even without a high tax rate and it will avoid cascading effect of taxes on taxes and simplify the tax administration

 

[Dem!god]

A person who earns 1000 rupees will pay the same GST on everyday items like petrol , food items , phones etc as a person earning 10,000 rupees... that puts more pressure on the low income groups , it's not proportional tax

Yes the government will be able to show that it has more money in its bag at the end of fiscal year but overall this is not good for low income group , who will slowly but surely get shafted as a result of this

There is no transformation here , GST is indirect taxation , it is just a way of taxation on the low income groups who tend to part of the "undocumented" economy and out of the tax net

you do not understand direct and indirect taxes. Indirect taxes always have same implication on all whether rich or poor. Like sale tax, vat, excise duty, custom etc. Anyone who avail these items they will have to bear the burden, that why rich consume more and poor less. But GST will lower this cost mostly on consumer goods as the present scenario the total taxes both of state and central are like 22-24% on most of items, this will be lowered to 18% thus beneficial to all.

Indirect taxes are never counted as progressive tax as it is a burden on poor and rich alike. Hence the developed and developing economies try to forcus more on direct taxes such as income, corporate and wealth, where the poor pay less and rich pay more. In 91-92 Indian indirect to direct tax ratio was very skewed, approx 80:20, which has come down to 45:55.
But all this does not mean indirect taxes should be not made more progressive, and GST is one of those step.