The root cause of GST’s complexity lies in the multiplicity of rates. Time and again, experts recommended a simple dual-rate system. They were all ignored.
An op-ed in South China Morning Post also lists 4 major issues, besides border, that obstruct India-China’s relationship & reflects on how the 2 nations can 'improve mutual understanding'.
Union Finance Minister Nirmala Sitharaman provided clarity on some key decisions taken by the Council, such as taxes on food and non-food items & taxes on resale of electric vehicles.
Issue of GST on food items is in news again after hotel owner’s viral interaction with Finance Minister Sitharaman last week. But complexities highlighted go back further in time.
GST council in its 54th meeting exempted universities, research centres governed by central or state govt, or those exempted from Income Tax, from paying GST on research grants.
Layers of complexity due to multiple tax rates result in similar products being taxed differently. There should be a phased move towards a low single rate to reduce incentive for evasion.
Finance Minister Sitharaman announces decision taken at GST Council meet, adds cancer drugs, medicines for rare diseases and food products for special medical purposes exempt from GST.
Union finance minister Sitharaman says govt cleared 90% GST compensation owed to states & only ‘5-8%’ is held back subject to authentication certificates issued by auditor general.
Council members agreed to raise the threshold of launching prosecution to Rs 2 crore from the present Rs 1 crore & GST on husk of pulses was reduced to 0 from 5 per cent.
India should have secured greater savings by pressing Russia for prices nearer the cap while sustaining high volumes. This would have preserved strategic autonomy and served economic logic.
One such website has drawn particular scrutiny for spreading fake stories that have upset not only the Indian but also foreign defence firms by falsely attributing misinformation.
Ten-a-penny socialist India got even the GST wrong, ha ha.