Do you actually know anybody who pays this tax or is this just the result of your morning's trawling (look it up)?
Sir, I sure do not know as much about a lot of things than you but this is one area where I am fairly competent.
The question of whether some business pays tax or not, is moot.
If some business does not pay tax, it means they can not get source tax credits, which in turn means to earn profit, they have to sell it at a much higher price.
As am example-
Business man A, pays the taxes. A now can claim source tax credits. What it means is that A can now pass on the tax credits to customer, resulting in A selling the material at lower price.
Business man B, Does not pay taxes. B now can not claim source tax credits. Now, since B can not claim tax credits, B's base price is always higher since he is paying a much higher cost than A for the same material. Now, his sell price must always be higher because he can't make profit otherwise.
Now as customer, you have option of buying the same material from A or B.
A offers you at a much lower price, The law of natural selection means B will be eliminated from business.
People look at GST and often forget the source credits.
Anyone who has worked in previous system will see this being very similar to VAT for businesses. But Now the source credits are applicable to all businesses.
Reason why GST is transformative is because it forces all businesses to come under the tax ambit. Without paying taxes, they CAN'T claim credits, hence can't compete.
Prior to GST, these same businesses gave us fake receipts and never paid taxes to govt. Now, there is absolutely no escape.
