GST, the biggest ever taxation law is going to be implemented from the 1st July, and as the date is getting closer we are hearing a lot of rumors and misconceptions related to this upcoming law. The most debated of all is whether GST is good or bad?
People can have their own opinion about this, many are saying that its good for the economy; few are not unison to this and are stating that it may slow down the pace of economic growth of India. But, very frankly the ultimate impact of GST can only be analyzed after the implementation of the GST law.
Be Aware Of All False Info Related to GST
Further, there are many other rumors, which are briefly discussed below to answer all your doubts related to the GST in India.
- People who have pre-booked the under construction flats are being told by their builders to deposit the rest amount before 1st July. If they fail to do so, the extra tax may be incurred after the implementation of the GST. This is completely baseless and false, builders are just trying to fool you.
- Businessmen are fearful that they will have to file 3 returns per month and one yearly tax. The additional secretary of the GST Council has made it clear that they will have to file only the GST return form 1 and the rest of the two will be self-generated.
- There is a common myth among the people that the GST will lead to the rise in inflation. But, in this regard, the RBI (Reserve Bank Of India) has clearly stated that the GST will not lead any increase in the inflation rate.
- Many people are of the opinion that the GST invoice will have a fixed format and all of them will have to follow the same. However, recently the Central Board of the Excise and Custom has made it clear that all the GST taxpayer can have their own design and format of the GST invoice.
- Many common people and buyers have the belief that though the GST will lead to decrease in the tax on many essential day to day goods, but its benefits will not be given to them. All of us must know that the Government of India has clearly declared that a part of concession obtained under GST must reach the common people, failing to comply may lead to the legal actions against such organizations.
- A highly rumored info in the air is that all the businessmen failing to register themselves before 1st July for the GST will have to shut down their work. The finance secretary Hasmukh Adhia has cleared this by stating that nothing like that going to happen at any point of time.
- Small business houses are fearful that due to GST all the info and data related to their work will be accessible to the Tax Inspector, and these tax inspector could detail this information to their competitors. Be assured, the Govt. of India has taken all the necessary steps to ensure the safety your data.
- Many businessmen and entrepreneurs are of the opinion that the GST might lead to the infamous ‘Inspector Raj’ in the country. But, it must be noted that all the procedures and systems under the GST are completely transparent and digital. There is no scope for the fringe elements like them to exist and run a parallel system.
- One of the most notorious rumors circulating is that the Government is not fully prepared for the rollout of the GST on the 1st July, and hence the date of implementation can be altered. But, it is nothing more than the ‘Pinch of Salt’ as the top officials including the finance minister have outspoken that the Government is all prepared to roll out the GST on the scheduled date, and there is no question of its extension.
- The last but far from the least, the Central Govt. is being highly criticized for keeping petrol and alcohol out of the GST. It is highly debated in the public domain that the Central Govt. of India is playing in the hands of some top businessmen of the country and is trying to provide some leverages to them. But, this is completely baseless and false. It must be noted that the petrol and alcohol are out of GST because States of the Indian federal system are not in agreement with the central Govt and are of opinion that keeping Petrol and Alcohol in GST will incur a loss to them. However, Center Financial Secretary asked them to reconsider it as it will be ultimately benefitting them, but still, the state govt is very reluctant about the inclusion of these two products in the GST taxation framework.
I just hope that the information furnished above will be beneficial for you and will help to eliminate all the ‘if and buts’ related to the GST.
Feel free to share your opinion on this regard and for any query about GST do comment below, it will be the pleasure assisting you all.