The eponymous name says it all: Goods and Services Tax (GST) is “a catastrophe for the financial system”. The ebook, written by a prominent academic, an expert on black money, and a confessed contrarian, disparagingly examines the implementation of GST in India these days. He concludes that it must be abolished in favor of a retail sales tax. According to the writer, GST stifles the increase of the unorganized region leading to loss of employment. This fall, he asserts, will bring about decreased demand, decreased capability utilization, and in the long run, lowered increase. Though in a few cases, expenses have declined, the total prices have risen after GST became applied. The partial GST version, which becomes adopted, has no longer helped.
Petroleum merchandise and potable alcohol, real estate, and energy duty were excluded from the tax base. He argues that the GST imposes a heavy compliance burden with seven tax prices and 37 returns filed annually. The exemptions given to objects of mass consumption disallow enter tax credit and are, for this reason, counterproductive. The GST Network (GSTN), set up often to match sales and purchases to counter tax evasion, has no longer been done. Worse, GST has failed in controlling black money. The author indicates.
The GST must be replaced utilizing a single retail income tax levied at the last stage without taxation at the upstream ranges of procurement, manufacture, and distribution. This tax is claimed to be less complicated because it would be accrued from fewer entities — best the very last dealers to the client. There could be no want for complexities like entering tax credit, reverse rate mechanism, and e-manner payments.