GST – Another Goof Up ?

The Law makers themselves do not seem to be aware of the statements made by them, which are contrary to reality of GST implementations.

I will clarify this by giving an example.

Say an item is purchased at Rs 8000, and as a result, if the GST rate is 18%, an amount of Rs 1440 is charged and paid.

This item, when sold for Rs 10,000, GST charged @ 18% shall be Rs 1800.

It is said that there shall be a credit available for the GST paid while purchasing, so effectively, the person shall have to pay not more than Rs 1800 for the said transaction.

But this is sent to a toss in the stock markets. A small time trader-investor buys some stocks or lots in future-option segment for Rs 8000 and 18% GST is charged. The same when sold, either on the same day, or later for Rs 10000 get charged with 18% GST of Rs 1800.

Such trader-investor pays Rs 1440 PLUS Rs 1800, that is a total of Rs 3240, because, being a small time trader-investor, he has never considered the requirement of registering himself for GST.

The STT or the Securities Transaction Tax, however, is charged only on the sell amount. Then why can’t the GST be charged also for the Sell amount?

Or does the GST committee and department wants to increase it’s working by advising every such trader-investor to register for GST.

Clarification is definitely required. more

Helpful All GST Queries Answered Oct 06

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P.K. Keshap

Sir, this input credit is available to the person who is registered with Taxation Authorities. more

Oct 09

P.K. Keshap

To make GST more simple, there should be 1 or maximum 2 rates. Tax administration should be robust. I hope that in 1 year many new changes will be brought based on the experience of new tax regime by the businessmen of India. more

Oct 09

S K Virmani

Rajneeti level has come down to such a level that one can see in the news channel nothing less than a fight between 5th class school boys. Similar is the view about media channels and behaviour of news ankars. Misleading the citizens has become legalised protected fashion. I am still searching that poor man whose reference came in the speech of our prime minister from Red Fort stating that the implementation of GST in the country has brought a period of happiness for the poor citizens as the prices have fallen down. Strange speech. How the prices could be fallen with implementation of GST when the rates of taxation have been increased. Some people talk about input tax credit. That was also available in VAT. more

Oct 09

Seshadre R

Even though I agree with the concern raised by Mangesh, just would like to clarify that GST is charged only on the brokerage charges (both buy and sell) and not on the trade value. As such, GST values would not be very high on a single trade but again when looked at it over a FY across number of trades, it does add up to a significant amount and as such, Govt. should make an exception to charge GST on the sell side of trade, similar to STT (or) split 18% GST rate equally across buy and sell sides. This would benefit lot of small traders. more

Oct 08

Shyamsundar Joshi

This govt not equipped with proper tax committee these socalled IAS,IRS is useless becos they dont know what is the bottomneck of SME sector problems and issues the limit given for exemption and composition is also very minimal considering present day cost, it shoule atleast 5 crores minimum limit and most important is simplification of Return filing and no nonsense of setoff of 3 taxes, the govt should do this instead of asking tax payer to do this , the dealer should pay whatever liability based on output tax minus input credit, simple like VAT as earlier one return showing Vat & Cst together in single return !!! more

Oct 07

Kamal Manocha

Businessmen should be engaged to Guide the minister and software Developers. more

Oct 07

Y R DESAI

But hard earned money of citizen is spent on salaries and other allowances and overheads of offices of these baboos? more

Oct 07

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