India

Is India ready for GST?

01 Jul 2017 | By Vaneet Randhawa
GST at midnight's stroke, but is India ready?

For businesses that are still bracing from demonetization, the bare truth is that small businesses have little knowledge about the changes under GST.

Small traders haven't yet grasped the basic fundamentals of "invoice, accounting system, I-T system" etc.

1.3 billion people, with almost half the concentration in small towns or villages, require education on the fair understanding of GST.

In context: GST at midnight's stroke, but is India ready?

Digitally-challengedModi says GST to make things easy, unorganized sector disagrees

The unorganized sector does not share Modi's dream of GST, which is why they have already started protesting against the move.

While those who have embraced the digital revolution hail the GST reform but it needs to be noted that businesses like traders and textile have yet to board the "Digital India" express.

In such cases, tax compliance will be a problem for traders.

01 Jul 2017Is India ready for GST?

Love India news?
Stay updated with the latest happenings.
Can India bear the brunt of the immediate inflation?

The burden of inflationCan India bear the brunt of the immediate inflation?

Modi had said 'consumer is king' when passing the GST bill, however, did he take into account the inflation that may follow?

Historical data of countries that implemented GST reveal that inflated price burden soon follows the reform and Global investment bank Nomura agrees with it.

Analysts also forecast the burden of additional tax on customers by retailers in spite of anti-profiteering rules.

Canada's tryst with GST

Canada implemented the GST in 1991 and its GDP dropped "from 2.4 per cent to 2.1 per cent". However, Canada's rendezvous with GST became successful because of its small population of 28.17 million.

Middle-class suffer?GST won't affect the rich as the poor

Inflation may also largely increase because the wealth distribution in India is not even.

While the government has chosen to be reticent on the matter, but it is true that it will be the average middle-class that will witness the force of GST.

The 1% privileged population which accounts for around 58% wealth -will easily scale through the beginning tumultuous phase after GST.

01 Jul 2017UP Minister doesn't know the full-form of GST

While the debate over India's preparedness lurches on, BJP's very own Social Welfare, Scheduled Castes and Tribal Affairs Minister Ramapati Shastri from UP embarrassed the government when he fumbled over GST.

Ironically, the minister had come out to make people aware of the GST norms, but when the media asked him about the full form of GST, he was unable to answer.