The government points
that GST is being charged on value addition and is kind of VAT, but the
question arises that then why we need five-rates, including the zero (?)...
If two business firms
generate same kind of revenue in nominal money terms on the value addition per
unit or per rupee, they should be taxed at the same rate...
However, it would
simplify the procedure... We do not need five rates...GST should target profits
on the value addition on goods and services...
There might be only two
GST rates 0 and 12%...
Firms having higher
profits would pay higher in nominal money terms... we do not need higher taxes
on higher profits and value addition...
A single and lower rate
would incentivize value addition in goods and services which means more
employment and demand and growth and better compliance...
The GST should promote
more and more value addition in the economy...
Moreover, demonetisation
to digitalsation were not a hit on all the black money, everybody knew people
would not give up easily, black money in cash was just the tip of the
ice-berg... But, was a blow to the generation of black money...
It was a signal that
the government won’t tolerate corruption and black money and the move was to
end generation of the black money...
The government showed
that it would not deter take strict action if it is in the favour of image of
the government and of the common-man despite criticism... which showed results
in the UP elections...
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