GST Important Dates
- Thread starter vgane
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Who is going to be hurt by GST?
Mostly the Small medium enterprise [SME] and unorganised sector whose profit margins are low . They might find conversion to GST difficult and cumbersome.. For some
if they incur GST ,their profil margins will erode and many may have to fold up.[of course it is not an argument that non payment of govt tax is justified]. Organised
players specially the large ones with all india presence and multiple warehouses will benefit with faster movement and lower cost of transportation besides lower taxes
depending on the slab . These large ones if they are in competition with small SME , SME will get killed. SMEs are employ a lot of workers and GST will throw many
workers out of job.About 50% of GDP is from SME.GDP will be hurt also.
For the time being petrol and diesel are left out of GST. But these are treated as cash cows by the state and central govts.India has probably the highest rate of
taxation on these items.The cost of these items when petrol was 115 dollars a barrel and now at about half rate around 55 dollars are only slightly different -Rs 76 and
67 per litre . This really means that middle class and the poor are paying heavily . Since diesel prices are also similarly regulated, cost of all commodities are also
higher.
Ultimately the burden is of the small man
Mostly the Small medium enterprise [SME] and unorganised sector whose profit margins are low . They might find conversion to GST difficult and cumbersome.. For some
if they incur GST ,their profil margins will erode and many may have to fold up.[of course it is not an argument that non payment of govt tax is justified]. Organised
players specially the large ones with all india presence and multiple warehouses will benefit with faster movement and lower cost of transportation besides lower taxes
depending on the slab . These large ones if they are in competition with small SME , SME will get killed. SMEs are employ a lot of workers and GST will throw many
workers out of job.About 50% of GDP is from SME.GDP will be hurt also.
For the time being petrol and diesel are left out of GST. But these are treated as cash cows by the state and central govts.India has probably the highest rate of
taxation on these items.The cost of these items when petrol was 115 dollars a barrel and now at about half rate around 55 dollars are only slightly different -Rs 76 and
67 per litre . This really means that middle class and the poor are paying heavily . Since diesel prices are also similarly regulated, cost of all commodities are also
higher.
Ultimately the burden is of the small man
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