tag:blogger.com,1999:blog-19649274.post6349445677551238407..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Design of the Indian GST: Walk before you can runAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19649274.post-43511968920021856292016-09-06T08:12:38.066+05:302016-09-06T08:12:38.066+05:30Registration is not the only factor while thinking...Registration is not the only factor while thinking about compliance costs. There is also the matter of a firm needing to file 37 returns (if not more). For a small firm, this is going to be an exorbitant cost. More power to the CAs. <br /><br />Given that only 40% of firms in Delhi deposit any VAT, maybe the first step forward is low tax rate and a "narrow" base. I feel this is the only way to create an effective machinery. <br /><br />In a huge machinery such as GST, I think the system is going to be as strong as the weakest link. As long as there are weak implementation states (Jharkhand?) it will be difficult to catch evasion.<br /><br />Finally, GST seems to be a silver bullet that will fix everything. That mindset is a huge problem. Please help me understand, how will GST fix the problems that in my opinion are the root cause. Specifically, one that there are items (for example furniture) where there is very low tax collection at the end. Customers just do not pay. Two, there is always stuff coming in from China which is undocumented, undervalued. It is difficult to measure the true value of stuff contained in a container which is the starting point of a black economy. How does GST fix these basic issues?<br /><br />Shekharhttps://www.blogger.com/profile/13235245907076011151noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-33607498385528703422016-09-03T17:22:50.100+05:302016-09-03T17:22:50.100+05:30The Constitution Amendment itself exempts goods fr...The Constitution Amendment itself exempts goods from GST. How can we have a comprehensive GST at a low rate with a huge array of exemptions?TK Arunhttps://www.blogger.com/profile/09271327858042064686noreply@blogger.com