What's new buddy?
And they call themselves liberals.
As usual the Liberal crowd has disappeared when confronted with facts.
If traders are feeling the current GST is complicated, it means only one thing. That they never paid taxes in their lives, ever.
Do you even know how horrible filing taxes were before GST?
Current GST is not even 1% complicated when compared to the previous tax regime.
All the looters who never paid taxes are feeling the burnt. Screw them. Why should you and me support these corrupt people when we pay taxes regularly?
this is 100% true. As I told I work in a financial consultancy company. We help traders register for GST. One of the requirement for GST registration is a PAN Card. You will be surprised to know how many of these traders and businessmen do not have something as basic as a PAN card leave alone any other registration like VAT, Sales Tax etc. When you and I work in a company our salaries will not be credited without a PAN Card. And these traders have been carrying out businesses for years without a PAN Card
I will also tell you about this Input Tax Credit and how it is forcing these businesses to come under the formal tax umbrella
You may not know but a business has to file 3 returns a month.
First is Sales - Details of all goods and services sold during the previous month
Second is Purchases - Details of all goods and services purchased for business purposes
Third is the reconciliation of Sales and Purchases
Suppose Business A sells something to Business B. He will have to quote both his and Business B's GST number when he files first return
Business B will quote both his and Business A's GST number when he files second return
In return 3 the reconcilation will happen only when both A and B have quoted each other's GST number. Only if there is a reconciliation in return 3 then Business B will get an Input Tax Credit.
What this simply means is that since Business B wants Input Tax Credit he will buy services from only those businesses who have a GST Number. So if Business A has to sell something to Business B he must have GST registration otherwise Business B will simply switch to Business C because Business C has a GST number and supplies the same goods and services as Business A
A lot of businesses that are now coming to GST are doing that precisely because their customers are demanding they get GST or they will find other vendors
The banks are not opening current accounts without GST
The transporters are not transporting goods without GST
The e-commerce portals like Flipkart and Amazon are not listing your products without GST
You cannot do a Google or Facebook ad without GST
Ultimately everyone has to come into the formal tax net. People who carried out business for years without paying a single paise tax are now feeling a pinch.
And some people are crying about 18% GST, 28% GST. Do they know that vast majority of traders can register for GST under composition scheme and pay GST as low a 2%-5% Previously the annual turnover limit of this was Rs. 75Lakh now it is Rs. 1 Crore
Basically if you are a small trader earning less than Rs. 1 Crore a year you can pay just 2% GST
there is a concern among traders that they dont understand all these new rules(gst was supposed to simplify the process but after multiple round of negotiations with opposition, it has become another complicated piece of legislature) , and the accountants as clueless(or inflated their fees).
hope govt treats the traders with compassion and not with a danda(give more time, dedicated helpline for queries, online self-assessment etc)
All these are being done. It is opposition which is shouting that the rules are complicated. Infact the govt has further simplified the rules just recently. I wont post it here but if you are interested you can read a blog I wrote for my company regarding the relaxed rules
http://www.soatech.in/gst-compliance-process-simplified/
