{"id":99919,"date":"2017-07-02T18:27:42","date_gmt":"2017-07-02T18:27:42","guid":{"rendered":"http:\/\/punjabpost.in\/welcome\/?p=99919"},"modified":"2017-07-02T18:27:42","modified_gmt":"2017-07-02T18:27:42","slug":"gst-great-instrument-help-poor-move-ladder","status":"publish","type":"post","link":"https:\/\/punjabpost.in\/welcome\/99919","title":{"rendered":"GST: Great Instrument to Help Poor Move up the Ladder"},"content":{"rendered":"<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\" size-full wp-image-81577 alignright\" src=\"https:\/\/punjabpost.in\/welcome\/wp-content\/uploads\/2016\/12\/GST-Taxes.jpg\" alt=\"gst-taxes\" width=\"460\" height=\"202\" srcset=\"https:\/\/punjabpost.in\/welcome\/wp-content\/uploads\/2016\/12\/GST-Taxes.jpg 460w, https:\/\/punjabpost.in\/welcome\/wp-content\/uploads\/2016\/12\/GST-Taxes-300x132.jpg 300w\" sizes=\"auto, (max-width: 460px) 100vw, 460px\" \/>A short and crisp video unveiled by President Shri Pranab Mukherjee and Prime Minister Shri Narendra Modi for the launch of the Goods and Services Tax\u00a0 in the majestic Central Hall of Parliament\u00a0 captured the clear objective \u00a0behind country\u2019s most important tax reform till date. Unlike what economists and other commentators have been telling us as to how the GST would push the country\u2019s Gross Domestic Product\u00a0 and make life easier for the trade and industry, the launch film showed\u00a0 a much broader aspect of the modern taxation that has the country\u2019s people, especially those economically less privileged at its core.<\/p>\n<p style=\"text-align: justify;\">In his inspirational speech at mid-night of June 30, minutes before the roll out, Prime Minister, referred to GST as a life changing instrument for the poor particularly in eastern Uttar Pradesh, other eastern states and the North East.\u00a0 Even as they are blessed with rich natural resources, these states have not been able to fully exploit the same for their development.<\/p>\n<p style=\"text-align: justify;\">On face of it, one might ask, how is GST going to be of great benefits to the poor of the country, or is it that the same old \u201ctrickle down \u201c theory is supposed to play a role , via trade and industry. To an extent, it could be so, but the very character of the GST would ensure in realising what the Prime Minister said before the country\u2019s most distinguished audience. The country\u2019s mature polity and cooperative federalism has finally delivered a system, which is people \u2013centric and not necessarily manufacturer centric.<\/p>\n<p style=\"text-align: justify;\">Unlike the excise or other levies, the GST that subsumes seven Central and eight state taxes, is not source or manufacturer based but a destination or consumer centric. In plain and simple language, the states which have more consumers would stand to gain immensely in terms of tax buoyancy that would then be channelled in the welfare schemes for the people and overall economic development of the states. Surely, states of Uttar Pradesh, Bihar, Odisha, West Bengal and North East, which did not have much of a manufacturing base and were losing on revenue would stand to gain while the developed and manufacturing hubs would be compensated at least for five years of the GST launch. More the consumers, higher is the tax collection in a state; though the consumers need to be economically empowered!<\/p>\n<p style=\"text-align: justify;\">The growth impetus to these states which could not keep pace with the states like Maharashtra, Gujarat, Tamil Nadu or Karnataka in manufacturing, would come from trade which in turn would generate huge resources for ploughing back into development efforts. Such a vibrancy would then lead to interest of investors, both domestic and global, into manufacturing and related service sectors, opening vistas for job creation for millions of people.<\/p>\n<p style=\"text-align: justify;\">\u201cGST is a system that ends the imbalances in the country\u2019s trade. It also boosts the exports of the country. This system not only provides impetus to already developed states but also provides the opportunity to the backward states to develop. Our states are enriched with natural resources \u2013 look at Bihar, eastern UP, West Bengal, the north east, Odisha. They are all brimming with natural resources. When they will get a single tax regime I can see clearly that whatever deficiency is there those will be removed and this art of the country will move ahead. All the states of India will get equal opportunity for development\u201d, the PM put the context right.<\/p>\n<p style=\"text-align: justify;\">Besides, the one nation \u2013one- tax from \u201cGanga Nagar to Itanagar \u201c in the words of Shri Modi, would surely make life easier for the industry, trade and common person in different ways, encouraging honest way for the \u00a0economic transactions. This is why, the GST has been dubbed as \u2018Good and Simple Tax\u2019 that would bring in a new governance culture.<\/p>\n<p style=\"text-align: justify;\">Both the PM and the President gave full credit to different political parties and governments at the Centre and the states in making the GST a reality. \u201cThis is not a\u00a0<em>Sidhi\u00a0<\/em>(realisation) of one government or a party; it is a fruit of common efforts\u201d, the Prime Minister said. The President, who had himself played a pivotal role in the progressive journey of the GST as Finance Minister in the previous government, had some apt words:<\/p>\n<p style=\"text-align: justify;\">\u201cThe new era in taxation&#8230;. is the result of a broad consensus arrived at between the Centre and States. This consensus took not only time but also effort to build. The effort came from persons across the political spectrum who set aside narrow partisan considerations and put the nation\u2019s interests first. It is a tribute to the maturity and wisdom of India\u2019s democracy\u201d.<\/p>\n<p style=\"text-align: justify;\">One of the principal advantages of the new tax regime would be doing away with the cascading effect resulting from \u2018tax on tax\u2019. Through a robust IT infrastructure, the system of input credit ensures that it gets passed and adjusted against the tax liabilities. This would only help the consumers. \u201cThe\u00a0prices of goods and services will come down. In the earlier system, the credit for excise duty, service tax, VAT and other indirect taxes did not get passed to the last vendor. But, in the GST, such credit goes to the supplier at the last stage of the value \u00a0chain which then gets transferred \u00a0to the consumers,\u201d said noted tax expert Shri\u00a0 Brij Bhushan.<\/p>\n<p style=\"text-align: justify;\">Finance Minister Shri Arun Jaitley too has been impressing upon the industry to pass on any gains which accrue following the GST roll out. He hoped that the government may not have to use the powers vested in it through the Anti-Profiteering Authority to ensure that the benefits get passed on to the common citizens.<\/p>\n<p style=\"text-align: justify;\">While even the President Shri Mukherjee said that there could be disruptions in the initial stage, such a thing would be constructive disruption. Once we are through the teething troubles and initial period of adjustment, GST would prove to be a people-centric, capable of transforming lives.<\/p>\n<p style=\"text-align: justify;\"><strong>\u00a0<\/strong><span style=\"color: #ff0000;\"><strong>*Prakash Chawla<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><em>*<strong>Prakash\u00a0Chawla\u00a0is a senior journalist and commentator. He mostly writes on political-economy and global economic issues.<\/strong><\/em><\/p>\n<p style=\"text-align: justify;\"><strong><em>Views expressed in the article are author\u2019s personal.<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>A short and crisp video unveiled by President Shri Pranab Mukherjee and Prime Minister Shri Narendra Modi for the launch of the Goods and Services Tax\u00a0 in the majestic Central Hall of Parliament\u00a0 captured the clear objective \u00a0behind country\u2019s most important tax reform till date. Unlike what economists and other commentators have been telling us &hellip;<\/p>\n","protected":false},"author":1,"featured_media":81577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[26,11],"tags":[],"class_list":["post-99919","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-articles","category-english"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GST: Great Instrument to Help Poor Move up the Ladder | Punjab Post<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/punjabpost.in\/welcome\/99919\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GST: Great Instrument to Help Poor Move up the Ladder | Punjab Post\" \/>\n<meta property=\"og:description\" content=\"A short and crisp video unveiled by President Shri Pranab Mukherjee and Prime Minister Shri Narendra Modi for the launch of the Goods and Services Tax\u00a0 in the majestic Central Hall of Parliament\u00a0 captured the clear objective \u00a0behind country\u2019s most important tax reform till date. 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