Wednesday, 15 November 2017

Gst polls - Is it a new cottage industry?

Many polls are held whether GST is badly executed? Frequent tweaking is happening? Any economic landscape that can be visualised and forecasted clearly can have precise measures/ planning.. While GST is a path breaking change but no radar can capture the post scenario with precision. When confusion is the path towards clarity, the wisdom asks us to be more cautious in every step as each step may pull down suddenly. In this unclear unpredictable post GST regime, Arun Jailtely has to evolve the tax and procedure structures. It is difficult to increase tax rates once we introduce but we can reduce as per the psychology of the citizens. Hence he adopted a safe five slab structure with an intention to tweak it once we move into post GST regime and arrive at the right combination. He will move towards a single structure over few years some items of consumption started with more tax rates as otherwise you cannot increase but you can only reduce as per tax payer psyche. If the overall GST collection is poor the states will start crying and there will be chaos. Therefore adopt a safe approach of having five slabs slightly at elevated levels and start reducing once we are sure of tax volume as we see in live situation.. It is like a corporate adapting to new erp or when we migrate to a new place for the first time. Have a base model and tweak it to perfection.. Anyone would face similar situation if they face such situation. When we move into new landscape with no precise inputs for prediction (as it is the first time and it is path breaking in terms of changes) here confusion is the path towards clarity. Arun Jaitely should not be blamed. This is an evolution which is a scenario any one will face when they introduce.. Arun Jaitely and Narendra Modi' strong will has to be appreciated. They should not break midway.. They have to show the will and determination. They are rightfully showing that.. Hence reforms will take the right shape.. One has to wait and give some more time to see the benefits of these reforms.

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