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This implementation is a very hasty one. Go and talk to small-biz-people and you will see the fear and confusion GST instates. Frankly, its scary to me and I ha
by smdz 9y ago
This implementation is a very hasty one. Go and talk to small-biz-people and you will see the fear and confusion GST instates. Frankly, its scary to me and I have studied quite a bit of tax. Compared to the previous complicated procedures, the new procedures are equally complicated. But these also deviate from previous definitions. And some terms on taxation have changed and have become ambiguous - like the definition of "Supply"
Its like "My manager(Govt) is making us(small-biz) fill status spreadsheets for 2-3 hours out of 8 every day. Why? Just because they can"
And I also worry about the IT infrastructure being implemented for filing these new invoices. The government has some very smart and efficient in house engineers - but we don't know if they made the backbone or if they outsourced it to the likes of TCS/Infy. For one, I have known a TCS tax filing implementation that fails regularly on the last few days of filing - they do some very bad implementations.
I get to talk to some small biz owners here, and very few of them had any clarity on GST as on 30jun. Most of them registered for GST numbers, but know nothing about compliances beyond that. Many don't even use software to create invoices. I got panic calls on "best/good/budget software for GST" on the last day. They didn't know what they needed. Nobody reads the rulebooks and even if they did, it would result into a throbbing headache with no output. So they rely on info from each other and the chartered-accountants who see their business booming.
Could it have been done with less haste? NO! But it could have been done with simpler procedures and a couple of months of education.
Infact, GST will not be a failure - Even if it is complicated, businesses are just used to adhering unnecessary complicated govt policies - they will adjust soon. But GST is hurting many small businesses right now. This will either lead to a bigger and newer black/gray money market - defeating the purpose do demonetization. Or it will make every Indian pro-tech. I'd assign equal probabilities to both outcomes, there is no middle ground now.
What we need to see if it becomes "One nation one tax" or "One nation, 29 taxes"
PS: For the record, I do believe that India has the best PM on this planet. I am a pro-BJP and anti-CONG (and anti-AAP). Please don't associate my criticism with political sides.
- intended 9y agoI love how you have to show your party affiliation to be taken seriously by your own party supporters. But i reaffirm your point. Implementation is going to be another points of damage to GDP over the next few months. Hopefully unlikely demonitization, there should be no hidden costs which surface months later.
- smdz 9y agoThere will be costs that will surface sooner. May be they will reflect in accounts in the next quarter :) But as I said, they are replacing an old-complicated tax system with a new-complicated tax system. Indians are used to living with complicated systems. They will adjust soon. Just hope that the IT backbone does not falter meanwhile
- masthead 9y agoI've heard that Infosys is handling the IT backbone of tax filing system.
- sonink 9y agoIt is complicated for sure, and it took me some time to get my head around it. But it seems to me that the complications arose because of compromises needed to be done to get this passed. Also, the current dispensation is to make it simpler over time. This GST was probably what was possible right now and full marks to the govt. for getting it done. They made compromises which will nullify immediate gains, but at the same time made sure that the structure is put in place to get full benefits over time. That being said, even in the current form it seems to be a huge jump from what we had.
- TokenDiversity 9y ago> This GST was probably what as possible now You are right! While they can improve from there, anything strong would not have sold, not just now but even later. This govt has a very strong mandate and it would have been stupid to wait for a stronger one.
- TokenDiversity 9y agoLol, I would not blame you for being pro-AAP given that you seem to have a not-so-bad grasp on some facts.
- TokenDiversity 9y agoJust to clarify, (not that I care about votes in either direction) I meant you do seem to have a good understanding of stuff.
- breitling 9y agoI don't live in India, but I have an interest in their politics, so I have a question for you: How can you justify Modi as the best prime minister in the world when he tacitly approves the killings of Muslims? A group he should also be the leader of. The Hindu extremists are emboldened under his watch. In many areas, India is going backwards under his watch. He's far from the best in the world. You just haven't bothered to look.
- perfectstorm 9y agoSeriously this. people are getting lynched every week because of stupid cows and Modi's silence condoned that behavior. It was only after coming back from US/Netherlands did he mention anything about it. It's still not acceptable IMO. people should be allowed to eat whatever they want. He's not the best PM but he has the best PR team in the world.
- rtx 9y agoEarlier people were getting blown up now lynched. Some may call it a trade off.
- breitling 9y agoAre you implying that the lynching is only of potential bombers? Because that's not true. Innocent people are the ones being killed with zero consequences for the killers
- perfectstorm 9y agoI think he meant pre-Modi people were getting killed in terrorist attacks but now they are getting killed from lynching. A terrible thing to say.
- smdz 9y agoDoesn't matter what I say. I am a programmer, not a political pundit. But I do know that perceiving any country's leadership just based on news is a very bad idea. To understand and perceive the reality, you have to live in India for few months (say 6 months but even 2 years may feel less). And try to live as a commoner here, get some job (not volunteer/NGO work), travel-to-work, travel to different cities/villages, go to festivals, talk to people and allow typical intrusive social behavior.