GST – INNOVATION OR IMBROGLIO

Indian Parliament ushered in the much hyped “Goods and Service Tax” (GST) from the 1^st day of July 2017, after prolonged parleys and deliberations between the Treasury benches and the Opposition. On a general perspective, it is a  dynamic move for introducing,  imposing uniform tax structure nationwide, removing varied tax rates which were in vogue and practice in the states of the Union since Independence.  Only an in depth analysis and acclimatization of traders to its interpretation,  nuances and receptiveness of the general public to its intricacies would go to speak about the pros and cons of this novel attempt.  It would be a boon if inflation falls, and bane if it boomerangs and overshoots the roof, burning a hole in the common man’s pocket. Time is the best judge and deciding factor.

The new legislation has four tax rates (5%, 12%, 18% and 28%) wherein everything that is manufactured, traded, sold and serviced have been classified and brought under.  The President of India, The Prime Minister and his council of ministers are unanimous in espousing the highlights of the Goods and Service Tax and the enormous benefits that would flow to the citizens, through reduction of prices of essential commodities. It is ironical that Congress, the main Opposition party, which propounded the concept of introducing a single tax rate all over the country, boycotted the “ historical midnight session of Parliament “, much to the chagrin of the ruling party and its allies. 

What would be the implications of Goods and Service Tax on the commoner – whether it will make them heave a sigh of relief through price control, falling inflation,  or make them groan in pain, fume with anger and  discontentment spurred by the system’s lapses and shortcomings,  is to be seen in the long run. It would be too premature to judge the outcome. 

Personally I wouldn’t rate it as exemplary, like it is being advertised by the Government in all media forms. There is lot of  ambiguity, apprehensions among varied industry, entrepreneurs,  traders and the elusive factor is “clarity”, on many facets of law.

It is to be acknowledged that basic essentials have been left out of the tax bracket, and the next rung of commodities suffer 5 % taxation. The yardstick  adopted for classifying the goods under various brackets is not decipherable. It is rather intriguing. For example – it is found that while  detergent soaps attract lower tax,   shampoos are placed in the higher slab rate, figuring as a luxury item. I am left to wonder as to when, how this transition took place and by whom it was done.  Corn flakes which have found a permanent place in the kitchen shelves of middle class families for quite some years now, suffers heavy tax, whereas  pizza cakes, macaroni, spaghetti and the likes have been sparingly taxed. Packed groundnut cakes, sweets prepared by village cottage industries have been pushed to the higher rate category.  Likewise the contradictory list is quite long. What is the rationale adopted for formulating such classification? Not fathomable to me. 

Some category of industries have come to bear the brunt in full. Particularly the matchbox, fireworks, wet grinders, entertainment etc.,  who have struck work from day one of implementation. They require a soothing gesture from the Government.

A disquieting factor is the consistent fall in interest rates on all category of saving instruments, over the past few years. Every deposit renewal fetches diminished rate of return on investments, placing the common man, more particularly the senior citizens in dire straits. The gap between inflation and income remains unbridgeable. Making ends meet is becoming a distant dream for the man on the streets.

Encouraging / increasing public savings is a pivotal task of a welfare state. This should  be achieved  by providing reasonable interest rate on investments. Contrarily,   the  interest  on  all types of savings,  has consistently traversed the one way route – “downward”.  People will lose ( have started losing ) interest in saving their hard earned money, in the future, if the interest rates are not made attractive.  Let the ruling polity take the bold step to cut down on the perquisites, benefits enjoyed by the Members of Parliament and Legislative Assemblies, do away with unwanted subsidies and curtail other Governmental expenditures, which will save humongous amount to the exchequer.  After all pruning should begin from the people’s “ Prathinithis “. ( representatives ).

Another jolt that has been delivered on the masses is the steep increase in service tax rate on the premium amount paid on  insurance  policies.    A totally unwarranted step, which would have serious repercussions on the  wellbeing  of  the insurance sector in the long run.  Corrective measures have to be taken by the Government to enable the industry to stay on a robust state, lest it may get plagued with ill health in future. “ Jeevan Bhima Nigam “ should not cry out           “ Jeevan Bachao “ over the years.

To perorate, the Government should seriously introspect to plug the loopholes, correct the mistakes, set right the shortfalls in Goods and Service Tax (GST) rates, classification pattern and manner of implementation, for promoting healthy economic growth, coupled with healthier public acceptance and appreciation.

This is an appeal from me, a CM ( Common Man ), to the PM ( Prime Minister ). Onus is on the Government to act – “ fast “.  Time is of essence.

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APPALLING APATHY

            The video clip aired by leading English news channels of the country bringing to fore the pitiable conditions in which our soldiers and servicemen are living in inhospitable terrain up in the Himalayan border glaciers, braving all odds and ills in the service of the nation, came as a rude shock  to me and millions of fellow countrymen.

            The clip features a soldier stationed in a border post on Indo-Pakistan border in the state of Jammu and Kashmir, and has been filmed by himself, in which he explains the travails undergone by him and other men of his company at the hands of his / their superior officers. He elaborates that soldiers serving at such   hostile places are not provided with adequate,  healthy food. What can one say about this startling revelation,  other than getting dumbstruck by the  indifference and lethargy shown and practiced in the military hierarchy..

            We hear about peasants, artisans, petty traders and businessmen, the downtrodden and the ordinary have-nots going hungry due to natural calamities, acts of God, unemployment and other related reasons. But this is the first time we have seen a hungry soldier, who in fact is a “Dwara Paalaka” of the nation,  narrating his tale of woe before public gaze. What a shame? While the viewing disturbed the mind, the thought and ground scenario remains detestable and  indigestible.

This video has been viewed by millions all over the world. Will it not present our nation in a bad light. Have we not failed, sinned our brave hearts, who deserve nothing other the best in food and comfort. Such callous treatment meted out to the nation’s guardians is worrisome, the mindset behind it being undecipherable. If not corrected on a war footing, it may have a telling effect on the morale of the serving personnel over the years.

            We see public money being wasted / looted unabashedly at will by the bureaucrats and echelons of political class, without much of a hue and cry being raised by the citizens, as their only hope to curb such rapaciousness lies on the judiciary.

            Let this video be an eye opener to the Government and the Defence Department, who should  bestow serious attention on this disturbing state of affairs and correct the wrong done to our servicemen, to whom every ordinary citizen is indebted for life.

Jai Jawan.