GST: A Simple or A Complex Taxation System???

The thought process and vision behind introduction of GST was very good, but the half prepared implementation strategy has resulted in making GST, a very complex and confusing taxation system. Complex, in the sense that it is not very easy to understand for the common man or businessmen & traders because there is no clarity at the ground level about what rate of GST is applicable on a particular item. This is because the Government has introduced multiple slabs which have made GST very complicated. This complexity can even lead to failure of GST. The better or simpler way of GST would have been that, there should have been only one slab of GST. Had there been only one slab of GST, it would have been very successful and transformational project. Due to haphazardness and various complications, now the businessmen are again going to CAs and have left each & every thing on them. We should have a taxation system which is simplified & not a complicated one. But the way it was implemented, the very idea of GST & simplification of taxation is defeated.

However, in case GST succeeds sooner or later, this would be very beneficial for the growth of economy of our nation. Earlier taxation systems had various loopholes, because of which the rich people were involved in many illegal practices and many corrupt business and corrupt government officers were taking undue advantage of such loopholes. Corrupt businessmen were getting high benefits and more than 50% government officials were also enjoying the monetary benefits, but by causing revenue loss to the government at the same time.

Now by GST, the transparency in the system would be 70% and no benefits would be passed to the businessmen having turnover less than 20 Lacs (exempted from filing returns) and 75 Lacs (paying one time tax on composite basis), this would again develop many loopholes and story would be the same. So we can say that GST is also no a full-fledged system. There are many shortfalls in planning of GST, which government should correct at the earliest, otherwise the country will be again on the same path as before!!