Rahul Mehta Gandhinagar LsCandidate

How imports are becoming cheaper to service providers and traders after GST, and may become expensive to end users in some cases
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^^^.
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Say a trader imports goods worth Rs 1000 in jun and same in july
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in june
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Price = Rs 1000
customs = 15% = Rs 150
CVD = say 15% = Rs 150
say profit he wants = Rs 100
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so price before vat = Rs 1000 + Rs 150 + Rs 150 + Rs 100 = Rs 1400
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vat = 5% = Rs 70
Total to customer = Rs 1470
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So now if customer is service business , say some hospital or CA or software company etc , then he can NOT take any of the taxes paid as input credit
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So his effective = price he paid - input credit = Rs 1470
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in july, lets keep GST = CVD + VAT = 20% , same as CVD + VAT
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Price = Rs 1000
customs = 15% = Rs 150
GST = say 20% = Rs 200
say profit he wants = same = Rs 100
so price before GST = Rs 1250
GST = 20% = Rs 250
Total to customer = Rs 1250 + Rs 250 GST
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So for end user price = Rs 1500 , which is Rs 30 i.e. 2% more than pre-GST case.
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But if buyer is a service provider like software company or CA or hospital etc, then he can take Rs 250 as input credit. So EFFECTIVE price to him is Rs 1250 !!! And this is Rs 220 i.e. almost 17% LESS than pre-GST price!!
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IOW, a large number of service providers are thinking of switching to imported goods because now ALL taxes --- VAT / CVD etc can be taken as input credit against the service tax (i.e. GST) they are paying.
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SOLUTION?
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Solution I propose is to scrap GST and instead levy wealth tax. And raise custom duty to 100% to 300% except for raw material, and enact rule that importer must get hos own dollars. If we print such rules, then WTO may expel us. Well, good riddance.