Rahul Mehta Gandhinagar LsCandidate

Details on how NaMo's coming GST ,will kill many small factory\business owners and thus WRONGLY benefit big businesses. Solution I propose is remove VAT, remove excise, remove service tax, remove income tax exemptions to Mauiritus\SEZ companies, impose wealth tax etc.
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WTO\IMF has been demanding "uniform universal VAT" in India since 1990. And NaMo's GST is just a new name to universal VAT. Incidentally, GST is also supported by Congress and AAP, and it is now very likely that Swami Ramdevji will support GST. So on issue of GST , now NaMo = Congress = AAP = Ramdevji !!! All that aside, this is how GST will kill small factory owners and small business. To understand this, the activists will need to stop slogan shouting, and look at the DRAFT and calculations,
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Say a factory owner makes goods and wholesaler W agree to pat price of Rs 10000 + taxes,. Then as per GST the invoice will be as
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Price = Rs 1000
Tax = 20% = Rs 200
Wholesaler has to pay Rs 1200 to F
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Now sat wholesaler W sells the goods to retailer R for a profit of Rs 20. His invoice will be
Price = Rs 1020
Tax = 20% = Rs 204
Retailer will have to pay Rs 1224 to R
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Say retailer decides to add Rs 50 profit. Then his invoice will be
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Price = Rs 1070
Tax = 20% = Rs 214
Customer will have to pay Rs 1284 to Retailer.
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Now Factory owner F has to pay Rs 200 to Govt, and wholesaler W has to write his GST chalan as follow
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Tax to be payed = Rs 204
tax paid via factory owner F INPUT CREDIT = Rs 200
net tax unpaid = Rs 4
So W has to pay Rs 4
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Now Factory owner F has to pay Rs 200 to Govt, and wholesaler W has to write his GST chalan as follow
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Tax to be payed = Rs 214
tax paid via wholesaler W = INPUT CREDIT = Rs 204
net tax unpaid = Rs 10
So W has to pay Rs 10
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Now if F doesnt pay Rs 200 to govt, then wholesaler W will have to pay Rs 200 (plus penalty plus interest !!! ). IOW, if factory owner disappears or defaults or goes bankrupt, then wholesaler will be in serious trouble. And if wholesaler and factory owner both default, then retailer will have to pay the full Rs 214. And an interesting case is worse. Say factory does pays Rs 200 GST, but wholesaler disappears and doesnt even file chalan. The retailer will have to pay Rs 204 extra, and will NOT get Rs 200 pauid by the factory owner deducted !!!
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This rule exists in Gujarat VAT and also in most state Govt. In feb-2013, NaMo made a law that "if vendor doesnt pay VAT, then VAT input credit to buyer will be disallowed". This clause was printed by NaMo in feb-2013 in sub-section 7 A to Section 11 of VAT Act.. Please google on it. What this clause means is that "if the person to whom you paid VAT, doesnt deposit VAT in Govt account, then you will have to pay that VAT amount again !!! "
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So say a wholesaler is dealing with 100 small factory owners. Say one of them defaults, Then wholesaler will lose all his profits that he made from other 99 factory owners. So over the period of time , wholesalers will stop doing business with small factory owners. And same way, retailers will stop doing business with small wholesalers. In long run, most small factory owners and small businesses will go down.
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This is basically "divide and rule via clumsy law" and "favor big company over small via clumsy laws" policy.
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Solution I propose is remove excise, remove GST, remove VAT, remove service tax, remove tax exemptions given to Mauiriyus\SEZ companies and impose wealth tax, inheritance tax etc. see chap-25 of rahulmehta . com/301 . htm for details
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Now many say that today is WRONG time to oppose GST. Well, I have been opposing VAST, GST etc for over past 6 years, andd spreading information for wealth tax, inheritance tax etc since 14 years. . For me, every day is same day. I was spreading this information against GST even during mar-may, and will continue. And IMO, if you are against GST, then best time to inform, voters was jan-2014 to may-2014, which you all missed due to NaMo-bhakti or AK-bhakti, and second best time is now,. Because after 3-4 weeks, voters will be far far less interested in political topics. "Sell umbrella when it is raining" is a common sense.
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