GST Bill

A collection of articles on GST.

  • This article provides a reading list of articles on GST published in Mint.
  • This article questions whether if companies are ready for the new tax regime. What about tax authorities?
  • Another article criticizing NDA and Congress for stalling GST.
  • This article talks about how GST benefits the economy.
  • The passage of GST bill in Rajya Sabha, where BJP doesn’t enjoy majority, has occupied headlines for quite some time. But it is only a start. This article gives a picture of the entire process.
  • I am sure everyone has had enough of experts talking about benefits of GST. However this article talks about some practical issues with implementation of GST.

“The most critical cause of the failure of GST will be in the transference of responsibility and liability of tax remittance to the customers of a supplier (Section 16(11)( c)). Basically, the law postulates that if a particular supplier has failed to comply with the law correctly — by furnishing the correct returns (Section 27(3)) and/or making the correct payment(Section 27(2)) — then its customers cannot avail themselves of the input credit; if given, it will be reversed.

The origin of this provision lies in the history of tax avoidance through false representations by a small section of businesses, and the fact that it is not feasible for the Government to systematically contain this problem. With the framing of this law, the Government hopes that the market will itself weed out the bad eggs — which is not wrong in theory. What is wrong is not understanding the cascading consequences of doing this in practice and the mayhem it will create. While the effort for driving compliance will reduce, the consequential effect of businesses shutting down, and therefore collections going down, have not been treated seriously enough.”

 Since I wrote this article yesterday, a new development has taken place. GST was finally passed in Rajya Sabha. An article in mint on the topic.

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Author: Bobbur Abhilash

I am a fourth year Doctoral student in the Finance and Control Department at IIM Calcutta.

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