Tag: GST

The GST Experts’ day out

By an odd coincidence, the CA day and the GST rollout falls today. We are probably the only country that celebrated the rollout of a new Tax law with so much enthusiasm. I am so proud of us. Twitter has been on fire since morning with people tweeting the same damn bill from Murugan Idli Shop (Shobha De, I am talking about you!) after having ghee pongal and tweeting that idlis have become unaffordable.

This is the bill that people shared claiming that they paid extra due to GST. The same bill used by at least ten different people. 😀 I still don’t see why people would come out of this shop without having their podi dosa and jigarthanda though!

Now, I just happened to observe in silence, the nation’s reaction to GST and the surrounding confusion. I am amazed to realise that all this while, we have been surrounded by scores and scores of economists! Thumping good ones at that. People who had been ignorant so far as to what all taxes they have been paying, have all become GST experts overnight. Don’t even get me started on the GST commentary and bashing that is going on in almost all the media.

GST, as far as I observed, has an effect of reducing the cost for the manufacturer in the long run. So when the cost price reduces, logically, keeping the other price variables same ( including Profit) the selling price also should be lower. That is the logic. This is because now the manufacturer will be able to take credit for every input he uses without the usual border troubles owing to different states and different taxes.

But trust me, that is not gonna happen. The manufacturers will be profit hungry and so will retailers. Even if the sourcing rate comes down, they are going to keep increasing the price at least a little because, hey! GST. Bashing the government for this is not fair.

Secondly, the loud noise that says the implementation is confusing and not in order. My dearest people, name one damn law of this magnitude that was implemented as smooth as a hot knife driven through a chunk of butter. I bet you can’t. Ever heard of the Companies Act? It was revamped big time in 2013 and rolled out. Any idea about the confusion it created?? I suppose not. Believe me when I say that there are still clarifications pending for a lot of issues regarding the Companies Act 2013.

So don’t even think GST will be a cake walk. It will not be and rightly so.

Hi-speed internet has actually given us a lot to be thankful for. We boast day in and day out about how information is just a click away and how we are all connected 24*7. It would be equally great if such information is verified before outraging on.

It would not be wrong if I say that arm-chair activism has reached a whole new level with the advent of such super instant messaging platforms.

Before hyperventilating on something, study, for God’s sake. Study the concept thoroughly. Study the intention behind such action. Study the implications. Study the time that would be required for such an effect to materialise.

Remember one cannot become an expert without studying. But hey! We have WhatsApp and Facebook so even I can become an expert in anything.