Rahul Mehta Gandhinagar LsCandidate

How new GST law may increase imports and reduce local manufacturing
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(The information here needs to be verified)
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Consider a product whose invoice value is Rs 100 , and MRP is Rs 120.
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Then before GST-law came, the total custom duty would be say 10% custom duty, and some another 15% counter valing custom duty,. additional custom duty etc. So total custom duty would 25%. And they both would apply on MRP. So total duty will be Rs 120 * 25% = Rs 30. And none of this becomes input credit to the intermediate trader / user or end user of this imported product. So cost to intermediate user (not end user) of imported product = Rs 120 + Rs 30 = Rs 150
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Now new GST law make custom duty applicable on invoice value and GST of 20% (or whatever) will also apply on invoice value.
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So custom duty will be Rs 10 and GST of say Rs 20 will be there , but it becomes input credit to the trader or business user. So net cost to intermediate user (not end user) will be Rs 100 + Rs 10 = Rs 110 only
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So net cost of imported product now decreases significantly - by over 30% to 35%.
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THIS INFORMATION NEEDS VERIFICATION.
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So if this is the case, then GST will further damage local manufacturers
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SOLUTION?
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Solution I propose is to cancel GST and instead use wealth tax. And raise custom duty to 300% on all products except natural resources (gold, silver, crude etc). And 35% of custom duty collected will be divided equally amongst all citizens. And imported goods cannot be taken as business expense deductions. And those who want to import will have to get their own dollars by exporting goods -- GoI wont give them any dollars.