GST needs Modification
GST taxpayers use around ₹4 lakh crore of ITC every month and pay around ₹1 lakh crore in cash. Even if 10% leakage in input tax credit is prevented, the net monthly gain to the exchequer can be ₹40,000 crore extra income per month. The GST Council will then have some scope for playing with the structure to bring down tax incidence further.
This is the statement published in the Economic Times of Shri Hasmukh Adia who was revenue Secretary.
If Input tax Credit is removed and GST rates are changed so that every person in a supply chain pays a small amount of GST and total impact on end consumer is say 12 to 15%. Thus government may get additional GST revenue of a least 50% of Rupees 4 Lakh Crores i.e. 2 Lakh Crores and total GST revenue could be Rs. 3 Lakh Crores.
Removing ITC will also simplify the filing of Returns which is very time consuming as all invoices needs to be matched. more
This is the statement published in the Economic Times of Shri Hasmukh Adia who was revenue Secretary.
If Input tax Credit is removed and GST rates are changed so that every person in a supply chain pays a small amount of GST and total impact on end consumer is say 12 to 15%. Thus government may get additional GST revenue of a least 50% of Rupees 4 Lakh Crores i.e. 2 Lakh Crores and total GST revenue could be Rs. 3 Lakh Crores.
Removing ITC will also simplify the filing of Returns which is very time consuming as all invoices needs to be matched. more
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If there are discussions without disturbance some thing can happen. However best brains are on the subject more
Jul 07
Sir, Mr. Hasmukh was revenue secretary and all this was in his knowledge and he is informing the general public after being relieved. Dont you think he would have acted if he could have acted. That is the basic issue. The political compulsions do not allow changes for the better. more
Jul 03
Issues of Majority Opinion, Oratory in Advocacy overriding the real form of implementing objectives of Indian Constitution. We are experiencing and witnessing in Legislature Houses and Courts of Justice. more
Jul 05
There should be proper software tools to check the claim for Input Tax credit and wrong claims should be severely dealt with. First time violations may be let off with stern warning and repeat offenders may be sternly penalized. more
Jul 03
After 2 years of implementation of GST, the input tax credit system should stopped and the rates of GST should be further reduced. more
Jul 03
