Rahul Mehta Gandhinagar LsCandidate
Pls fwd this on WhatsApp etc . Pls also share on FB
.
----
.
SOLUTION to a SERIOUS problem in GST , that "buyer must first pay tax to seller, but if seller doesnt pay to Govt, then buyer will have to pay that tax amount AGAIN".
.
Pls see today's Indian Express (22-jun-2017 , thus) page-2 of Ahmedabad / Delhi / Mumbai / Kolkata / Pune editions and and Financial Express Bangalore (page-3)
.
The advertisement on STAS (bottom left corner) . The links are
http://epaper.indianexpress.com/c/19979082 , http://epaper.indianexpress.com/c/19977942
.
Image is attached.
.
Full text of the advertisement is as below
.
=======
.
(advertisement)
STAS - Proposed law-draft by us at Recall to Recall Party
to solve serious problem in GST namely “Missing Trader Problem”
.
If you support this STAS law, then pls tweet “ @PmoIndia #STAS mygov.in/comment/101405141 “
.
======
.
(1) Problem : MTP = “Missing Trader Problem” in GST is – say GST is 20% and say buyer B buys goods of Rs 1000 from seller S ; then as per GST law, buyer B must pay Rs 200 of GST to seller S ; now say seller S doesn’t deposit this Rs 200 to Govt. Then we have what we activists call as “Missing Trader Problem”. The economists havent given any name to this problem, as they consider it as a “minor unimportant” problem which causes no effect.
.
Now clause-16.2.c of CGST act says “that even if buyer may have actually paid GST of say Rs 200 to seller, but if seller doesn’t deposit that GST to Govt, then buyer will not get input credit”. So effectively, buyer B may have to pay that GST of Rs 200 again or bear equivalent damage !!
.
How will this ruin even honest small/medium traders and manufactures? Because
(a) zero large traders and manufactures will do this fraud.
(b) but some 2% of small/medium manufactures/traders may do this fraud.
.
And so all small/medium trader and manufacturers will lose reputation and lose most buyers. So MTP can do serious damage to survival of even honest small/medium traders and manufacturers. Also, problem of filling 37 returns in several states is also serious. So any solutions?
.
========
.
(2) Proposed STAS (Separate Tax Account System) is :
.
(2a) Banks will allow GST a vendor to open a separate TA (TA = Tax Account) linked to his current account
.
(2b) Bank will allow TA = Tax Account owner to use money deposited in TA only for two purposes – (i) pay GST to Govt or (ii) transfer money to any other Tax Account. So once any money comes into TA, it will defacto remain with Govt only
.
(2c) Say a buyer B buys goods of Rs 1000 and GST is say Rs 200. Then B may write two cheques – cheque of Rs 1000 to current account of seller and cheque of Rs 200 to TA = Tax Account of seller. So GST of Rs 200 is defacto paid directly to Govt !!
.
(2d) So now buyer B will never face complain from Govt that “seller S didn’t deposit GST that you buyer B paid”. IOW, B will never face MTP !!
.
(2e) If TA owner wants money back, then he can pay to Govt first, and then ask for refund. The competent Tax Officer will decide the refund.
.
In tinyurl.com/RrpStas , I have shown how STAS can be extended to credit/debit card for spot payments. And how STAS can be extended to cash !! And with STAS, 1 quarterly return suffices, because input credit paid is never lost and so monthly returns arent needed.
.
We request all activists, traders, manufacturers to look into STAS have proposed. And if they believe that this proposed system can reduce problems, then we request them to send following tweet “ @PmoIndia #STAS mygov.in/comment/101405141 ”
.
=========
.
(3) Another serious problem in GST is that SGTS credit across states cant be setoff. Solution?
.
Problem can be reduced by legally allowing vendors to buy/sell SGST credits across India at market rates. i.e. SGST-credit of State-A of Rs 100 may fetch Rs 95 or Rs 105, depending on which what is in excess supply or deficit in “market” !! By legally allowing such sale/purchase of SGST credits, problem of loss will reduce.
.
========
.
(4) Most important solution we propose is 1% wealth tax on land above 2000 sqft per family and income tax paid and 5% salary paid to employees be deducted. So anyone “using” land will face zero wealth tax !! This will bring down land prices, increase industry, reduce unemployment. Details at tinyurl.com/RrpWealthTax
.
=====
.
advt from : Rahul Chimanbhai Mehta, B Tech, Computer , Science, IIT Delhi; MS, Comp Sci, Rutgers Univ, USA
.
Right to Recall Party (to be registered)
.
to join RRP, pls follow my profile fb.com/MehtaRahulC ; if you cant use FB, then only pls msg at 98251-27780
.
videos on RTR, JurySys, enact wealth tax, why/how end draconian GST, are at youtube.com/RightToRecallGroup
.
