Is Gst Bill Worse Than Land Bill?

[lazybugger]

USA is rich enough not to have GST, well USA is strong enough to align the rest of the world for satisfying its needs.

India on the other side needs something that can balance income distribution in all states irrespective of production.

 

that's why there's free labour movement in India. bihar guy can come work in TN, make a lot of money, and send it to his home state. That's more than enough to balance income distribution.

 

already income taxes, service taxes, are being collected by the central govt, now they want a share of the sales tax pie too.

 

this will definitely increase the price of goods across the market.

 

already Maharashtra is levying special taxes for goods produced out of their state. If GST is passed, TN will do the same too. The only way to keep manufacturing in their state.

 

GST will only make things worse for consumers. VAT model was working really well, except that there were too many taxes. something could have been done about it.

[lazybugger]

If not as a whole country but states follow GST principle I.e simplified tax system unlike current system in India.

The main feature of the GST is simplified tax structure and that there is a tax credit available at each stage of the value chain. There is a value added at each stage right from manufacture to each additional stage of sale but the tax to be paid is only on the value added instead of the whole amount. So for example if there is a tax paid on Rs 2 lakhs at 15 per cent at the first stage then the tax here will be Rs 30,000. At the next stage whenthe same goods are sold at Rs 2.5 lakh then the tax would be Rs 37,500 but there is a set off of Rs 30,000 available so the actual tax at that stage will come to just Rs 7,500.

 

yeah I know how VAT works. india's tax system is not complicated at all. just that there are too many taxes, and things get stuck in redtape. 

 

GST, as I explained earlier, will not solve it. because states will increase their taxes to stay relevant.

[lazybugger]

GST bill valla India ki use enti ? and also I heard ee GST valla deflict states like AP, kerala will be benefited and surplus states like Telangana, Gujarat, TN will lose antunaru. Nijamena ?

 

yeah. but nothing to do with budget deficit/surplus. manufacturing heavy states like TN, Maharashtra, haryana, Gujarat will lose.

[athletics]

GST bill valla India ki use enti ? and also I heard ee GST valla deflict states like AP, kerala will be benefited and surplus states like Telangana, Gujarat, TN will lose antunaru. Nijamena ?

Simple taxation and Uniformity, eventually state governments share of money will increase, some developed states as you mentioned will be at disadvantage in the short term because they are compensating other weaker states. Good thing out of this and NEETI ayoag is that central government will be able to end of 90℅ subsidies and not mingle in state welfare affiars and let states set their own priorities.it makes sense becuase Central government should look after rivers, roads, external affairs and military than mingle with the priorities of a state on what they want to spend and when.

[King_Kong]

yeah. but nothing to do with budget deficit/surplus. manufacturing heavy states like TN, Maharashtra, haryana, Gujarat will lose.

 

Yeah manufacturing states will lose. GST dwara total collect chesina taxes ni states ki malli share chestharu ga ? On what basis they calculate which state should get how much share ?   

[vaade_veedu]

that's why there's free labour movement in India. bihar guy can come work in TN, make a lot of money, and send it to his home state. That's more than enough to balance income distribution.

 

already income taxes, service taxes, are being collected by the central govt, now they want a share of the sales tax pie too.

 

this will definitely increase the price of goods across the market.

 

already Maharashtra is levying special taxes for goods produced out of their state. If GST is passed, TN will do the same too. The only way to keep manufacturing in their state.

 

GST will only make things worse for consumers. VAT model was working really well, except that there were too many taxes. something could have been done about it.

 

How come free labor movement is enough ? You are saying as if Indians are richer than the west because there are lot of Immigrants to the west who send back money to India,

 

How many really pay income tax in India unlike in US where people queue at the IT office by april ?

[lazybugger]

How come free labor movement is enough ? You are saying as if Indians are richer than the west because there are lot of Immigrants to the west who send back money to India,

 

I'm saying that its a good thing we don't have a uniform global sales tax. and that its not the job of the west to enrich indians.

 

anyway, you and I differ in how we approach the lowest unit of government. I want to think that state government should be the lowest unit, and that all states should have complete power to even tax income, and sales of goods. 

 

you think that, Indian govt should be allowed to redistribute income and maintain parity among states. which they already do with the income tax, service tax, central sales tax, they collect from the states. Now its unfair that they take away the biggest source of income for states.

 

Now how is, for example, Haryana going to showcase itself as better than, say, West Bengal?

 

All this talk about reimbursement is all BS. No one knows which way the economy will turn, and no one can exactly calculate how much a state has lost, even after the end of a financial year.

[lazybugger]

Yeah manufacturing states will lose. GST dwara total collect chesina taxes ni states ki malli share chestharu ga ? On what basis they calculate which state should get how much share ?   

 

who the fcuk are they to share it back? They already tax income. If they think not many pay income tax, they should concentrate on making more people pay, than asking states to give away their powers to tax sales inside their states.

 

They have some weird formula no one understands (its on the planning commission website), but basically well performing states get less, while laggards get more.

[lazybugger]

I expected Modi to come up with the Land Bill.

 

But I didn't expect him to come up with GST. or may be its Jaitley.

[vaade_veedu]

I'm saying that its a good thing we don't have a uniform global sales tax. and that its not the job of the west to enrich indians.

 

anyway, you and I differ in how we approach the lowest unit of government. I want to think that state government should be the lowest unit, and that all states should have complete power to even tax income, and sales of goods. 

 

you think that, Indian govt should be allowed to redistribute income and maintain parity among states. which they already do with the income tax, service tax, central sales tax, they collect from the states. Now its unfair that they take away the biggest source of income for states.

 

Now how is, for example, Haryana going to showcase itself as better than, say, West Bengal?

 

All this talk about reimbursement is all BS. No one knows which way the economy will turn, and no one can exactly calculate how much a state has lost, even after the end of a financial year.

 

Well India is a case where if you give independence to a state, they end up using that freedom to suppress other states, that's what happened to Telangana

 

There is no need for Haryana to show case that they are better than West Bengal, seeing WB in tatters doesn't make the country proud.

[lazybugger]

Well India is a case where if you give independence to a state, they end up using that freedom to suppress other states, that's what happened to Telangana

 

There is no need for Haryana to show case that they are better than West Bengal, seeing WB in tatters doesn't make the country proud.

 

ah, then lets have integration of rivers. 

[athletics]

I expected Modi to come up with the Land Bill.

But I didn't expect him to come up with GST. or may be its Jaitley.

Isn't GST brain child of chitambaram? Jailtey just took it from where chitambaram left it and pushing for a resolution

[vaade_veedu]

ah, then lets have integration of rivers. 

 

No funds, no manpower, no motivation

[lazybugger]

Isn't GST brain child of chitambaram?

 

that's why it resembles that smug a$$hole.

[donganaaK]

yeah, liquor main revenue for TN.

 

but loss undhi. manufacturing lower cost places ki transfer aythundi, because the rates are uniform, and input credit will be provided irrespective of where the product was manufactured.

 

plus. states can have extra 1% on interstate goods ani undi. This means that the new central sales tax will be 1% instead of 4%, but the problem is not with the rate itself.

 

The problem is with the implementation. All the goods transported out of state, will still have to spend days at the border to enter another state.

 

So what exactly is GST achieving? Its a loss: loss for both states and traders. especially slightly industrialized states like Maharashtra and Tamilnadu.

 

thats actually advantageous to the business owners right ?

 

 Instead of paying 10 different kinds of taxes in different states u can pay a single tax from which those respective states gets a cut  , GST actually simplifies the tax system for businesses .