Rahul Mehta Gandhinagar LsCandidate
Every clause of GST that SoGa / NaMo / ArKe and congress / rss / aap workers have written is written with goal of killing business with turnover say below Rs 10 crore so that large companies can take over their businesses !!
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Consider the clause that if a company is has branches or warehouses or even salesmen in 3 states, then it would need 3 registrations - one per state, and need to file 3*37 = over 100 returns a year, 37 returns per state !!
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So a large company which has huge business across India will have zero additional costs
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But when a small company which has 95% business in one state and some 5% in 2-3 other states will see that it is better off winding up business in other states. Likewise, when a small company which has business in one states grows and starts vey small amount of business in other states --- it administrative costs will shoot up even though business has yet not developed.
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Another clause is -- if input credit exceeds gst collected, then company can get refund -- but discretion of officer would apply. This is hell hole of large corruption. The Minister will simply order that no small company should be given input credit refund and large companies will get all the refund they want !!
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The unethical favors that large company owners got - "take loans from PSU banks and dont repay", low interest rate loans from PSU banks and govt plots at throw away prices -- will go on and on and on and increase. The only reason why small company owners survived till date was because they had lower tax rate. Now with GST, effective tax rate on customers of unregistered / composite traders doubles !!! And so most company owners will now see their customers walk away
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The large importers will have a field day with minimal accounting heqadaches. They can bring goods at port, pay custom duty and GST and send their goods across India and face no missing trader problem or DTSTP.
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The left over of efficiency in manufacturing in India was due to MSE owners, and not large companies' owners. The MSE were the REAL education institutes for millions of craftsmen such a plumber, welders, mechanics, refrigerator repairers, ac repairers and so on. The so called ITI and Polytechnics colleges teach zero and the large companies dont want hire people with no real experience. It was MSE which took "illiterates" from ITIs, and gave them REAL education. GST will kill MSEs due to Missing Trader Problem and MTCSTP = "Multiple Taxation on Customers of Small Traders" problem.
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The 1991 "reforms" saw end of CrownTv and 1000s of REAL manufacturing units in India (Crown used to manufacture TV tubes as well). The GST will further reduce real manufacturing in India.
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SOLUTION?
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Solution is trivial. Remove GST, and instead bring Wealth Tax. Wealth tax will reduce land prices, and this enable more and more to start factories and businesses. And wealth tax will reduce rents and prices of flats etc and so labor and all will have higher disposable income, which will further increase industries. By all means, wealth tax is far far superior than GST. If we compare GST and Wealth Tax, GST is a piece of garbage --- a royal piece of garbage.
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Summary of wealth tax is at --- https://www.facebook.com/mehtarahulc/posts/10154516735651922
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Pls see above link for summary and links to full draft. The above link also has list of activism steps which increases possibility that GST will get removed and Wealth Tax law will come.