do away with input tax credit
Government should give a serious thought to do away with input tax credit. A business man can cut his GST liability by claiming credit to the extent of gst paid on purchase. Fraudulent traders avail input tax credit with the help of forged invoices for sale and purchase.
As it is the benefit of input tax credit is not passed on to the consumer.
As per report in TOI 2 directors of 2 firms were arrested for Rs.660 Crores GST con. Every now and then such reports are published. However it may not be possible for authorities to catch all fraudsters.
The solution is to have a lower rate of GST on every item which will ensure that end consumer pays a reasonable amount of tax. more
Our governments irrespective of who are in office always follows the wrong policies and principles of fixing high rates of taxes being unconcerned with the fact that high tax rates encourage the tendency of tax evasion resulting in low tax collection. Instead, the policy of fixing nominal tax rates covering large number of items and people should be followed, which will not only increase the aggregate tax collections but also inculcate the habit of tax payment in the majority of our people. more
WHATEVER SYSTEM YOU MAY IMPLEMENT,THERE WILL ALWAYS BE SOME ELEMENTS WHO WILL BYPASS THE SYSTEM.AND OF COURSE CASH IS ALWAYS KING. more
I am extremely sorry to note that most people commenting on this post have no idea about GST or the system of input credit or its need and history. Comments are mostly populist demands, which have great appeal to the uninformed and ignorant. more
The suggestion made is worth consideration by the Govt. It may not have much adverse effect on Govt. revenue. more
A middle class salaried person gives around 62% of their income to govt as TAX.
Input credit should be given to TDS payer not the trader or business man. more