Issues with GST: Inputs Sought
1. GST is not a Good and Simple Tax as was promised by PM.
2. Input Tax Credit system has given an opportunity for massive frauds. Input tax credit is 400% of GST collection.
3. Input Tax Credit system needs to be abolished. GST rates can be 0% for exempted goods & services, 5% for all goods & services and 15% for luxury goods & services without input tax credit.
4. GST @ 18% on members contribution towards common expenses per month exceeding 7500 is unconstitutional. Section 2(17) (e) of CGST Act 2017 should be deleted. Explanation is attached.
5. GST @ 18% on TV viewing should be reduced to 5% as TV is used by all sections of society including poor persons.
6. GST @ 18% on Insurance Premium should be reduced to 5%.
7. GST compliance has become complex day by day since July 2017 due to hundreds of notifications being issued to make it more complicated. This has created an opportunity for corruption.
8. Even Advance Ruling Authorities are a confused lot as different rulings are being issued in States.
9. Cement is being charged GST @ 28%. Is it a Luxury good? Even poor also need it. The GST rate should be 5% without input tax credit.
10. Abolishing Input Tax Credit will save thousands of man hours spent on filing a large number of Returns.
11. Abolishing Input Tax Credit system will result in savings of Crores of Rupees to business men which they incur on getting Returns filed by Chartered Accountants. Minimum charge for filing a Nil return is Rs.1200/-.
12. GST Council should also invite Business Men and Chartered Accountants for meeting to make GST a Good and Simple Tax. more