State of the economy

Good insights on what could be done to address the economy but given the collection challenges of gst and direct tax how can the govt boost rural give away. more  

Jayati Ghosh is recommending something like NYAY scheme of Rahul Gandhi, pay 72,000 per year to a large section of population -- a sure-shot recipe for disaster - giving away money collected from honest tax payers to be frittered away on unproductive consumption. High inflation, high fiscal deficit and higher interest rates will be the immediate result.

The other person sitting along with Jayati in the video is Thomas Picketty who has been pushing the concept of Uniiversal Basic Income. Basically another failed socialist policy, old wine in new bottle. Why would some one want to labour and work hard to earn a living when they get money in the account idling at home? Looks like such economists are being sponsored by outside agencies which want Indian economy to fail. more  
Challenges are many and severe. But the GoI should have before announcing the scheme and its implementation, should have drawn up a categorical procedure for tax collection by the States which does this service for the Centre as well. Besides, the tax collectors in States should have clear orders of direct deposition of the GST/CGST after assessment in the Consumer Welfare Fund of the State Department of Consumer Welfare.

I would also like to mention here that the GST/CGST, which is known as "Integrated Tax" as well must not be retained by the Government of India as per its Notification No. 21/2018–Central Tax dated 18.04.2018, extract copy as follows:

“97. Consumer Welfare Fund.-(1) All amounts of duty/central tax/ integrated tax /Union territory tax/cess and income from investment along with other monies specified in sub-section (2) of section 12C of the Central Excise Act, 1944 (1 of 1944), section 57 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and section 12 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017) shall be credited to the Fund:

"Provided that an amount equivalent to fifty per cent. of the amount of integrated tax determined under sub-section (5) of section 54 of the Central Goods and Services Tax Act, 2017, read with section 20 of the Integrated Goods and Services Tax Act, 2017, shall be deposited in the Fund."

Everyone of us must know that the refund of overcharged taxes on sales whether Sales Tax, VAT or GST/CGST are the 'personal money' of consumers, hard earned and saved abused by the retailers, have got to be placed in CWF in the hands of the representatives of consumers in the Consumer Protection Councils under Consumer Protection Act 1986 and CPA 2019. IT MUST BE CLEAR IN THE MINDS OF EVERY CONSUMER THAT THIS RECOVERED MONEY IS NOT A REVENUE OF THE GOVERNMENT FOR INCLUDING THE SAME IN THE FINANCE BILL. more  
Well what Respected Jayanti Ghosh is explaining about what Govt. is not doing ,but let's not forget govt.takes decision based on lot of deliberations with the various economic forums, committees within the govt.n also their economic expert advisors. Any Govt. may have certain political compulsions under which certain decisions like waiver of loans, free electricity or even the areas of health, emenities n the water supply, roads connectivities, so how can see say not taking call on slow down. Yes there can be more focus on employment ,but all our experts forget the largest employment provider is Agriculture sector, but any farmers generation ,particularly wants to do farming job, does he wants to work in fields.Madam perhaps is not aware that during pick of farming seasons , farmers don't get farm labours, he has to virtually touch their feets n pay but they don't want to work, if farmers adopt the mechanised farming with machines, everyone will shout they are snatching bread n butter of poor labours. During festive seasons the migrated labours go on leave for months in industries like construction, textile, agriculture etc;
Had all what she explained been done then also it is not the ultimate and only remedy. This happens in any country but the situation n socio economic conditions may vary as per geographical n political scenario. Currently in UK there is big debate for and against BREXIT is going on. The situation is highly volatile n on fluid state that also adds to the economic conditions which some experts think is good n some thinks it is not .
Any way the cash flaw is important yes, but with rise in inflation the buying power reduces, the middle class families are attracted in spending after buying vehicles n other luxury goods ,because banks gives finance , but they forget they have to pay back w A salary class person has fox salary where from one can pay back n meet those extra expenses , education, medicals.

To me it appears that our wise people were knowing or have ignored while signing the WTO agreement, under lot of pressure n had to go for unaffordable economic reforms n reduce subsidies, bring every service under tax, for which our country was not grown up in age compared to the developed countries ,The reforms and growth what they are at have reached there in 500- 200 years they want us to reach there just in 20 years how is that possible n stil in some developed EU countries the farmers, industrial labours are agitating .Can any one explain it? more  
On Monday, 14 October, 2019, 04:11:53 pm IST, Sudesh Rai <> wrote: more  
Post a Comment

Related Posts

    • Fixing the economy steps via budget

      GDP is at 42-year low & markets at all-time high, banks flush with funds but not lending, farm income collapsjng while govt-spend on farm is up. Doing business rank is up but investment Is down...

      By Sujata Singh

      Well questioned the Amazon Chief by the Minister . This was not the situation earlier as India would always hesitate to Challenge . Earlier withdrawing / Post Poning y from RCEP [Regiona...

      By Jayakumar Daniel
    • Govt saying no to Investment yesterday

      The Govt yesterday looked down upon 1 Billion Amazon investment. China reaches $10000 per capita income. India is just around $2000/. That is the gap we need to bridge. Going by the cur...

      By Sudesh Rai
    • State of Indian Economy

      What last CEA is presenting seems like the economy is not in recession but depression. Can all of u look at these 4 charts and share inputs on why they are accurate or inaccurate. Please no anecdot...

      By Nikita Merchant
    • How Govt makes it difficult to do business

      Local administration gets a private company to make an app. No one knows about it. Then sends notices to pay 50000 to 8000 companies for not registering on the app. Attached.

      By Ajay Dutta
    • Now airtel brings out its begging bowl

      Like kumar mangalam birla last week was asking govt for package, now sunil bharti mittal is saying me too. Arre bhaiya jab apne hundreds of employees ko crores baant rahe the aap, tab ky...

      By Sudesh Rai
    • Current slowdown is very real

      29% people last month have defaulted on EMI payment due to business downturn and 36% due to delayed salaries. There is a major cash crunch in the industry. The surveyors looked at 200000 cases that...

      By Mala Sehgal
    • India searching for a landing site - The Economist

      Global investors once fell in love with India’s growth “story” because of people like Shanmuga Subramanian. Educated in mechanical engineering, he became a computer programmer, wo...

      By Naina Mittal
    • NEFT 24x7 notification

      My wife has shared the details about how her inputs were taken on making NEFT 24*7 by these circles which is commendable. Attached is the 24*7 neft notification. If your bank doesnt make...

      By Arjun Singh
    • Be ashamed KM Birla

      For saying you need a bail out from the Govt to continue Vodafone - Idea as a going concern. The Govt if you bail this, you need to bail every startup every SME in this country hundreds ...

      By Sudesh Rai
    • Staring at an abyss

      This article is about my Uncle M, a man whom I love and respect very deeply. He is an entrepreneur, making a precision cutting tool for the leather industry for nearly four decades now, and has alw...

      By Rohit Jain
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)