The real problem is with discounts.
When the manufacturer sets the MRP. The e-commerce retailers and regular retailers are taking the MRP as the selling price of the item and doesn't seem to consider that the price includes the GST.
So after discount also they apply the GST. This is ridiculous.
I do believe this is done deliberately, to benefit more from a profiting perspective.
Also, a key point I would like to make is the government must bring down the GST on items and use a different approach. I suggest the following way.
Let us say government wanted 10% GST on an item sold in the market.
1. OEM sets MRP and pays .25% of x as GST. If selling to a wholesaler add the GST No of the wholesaler.
2. The wholesaler sells the item at whatever value but will pay .25%x GST.
3. The retailers sell the item at .25% of x as GST.
4. For transit or (e-way bills) the service provider pays .25% of x as GST.
So this totals to 10% GST on the item overall.
Now comes the issue of tax evasion. Now GoI must mandate everyone who runs a business to have a GST number.
Don't give slabs to businesses. (Below 20 lakhs nobody pays GST) Most small businesses make profits and also keep the GST amounts collected. The perfect way to profit obnoxiously.
Also, the government of India must ensure the slabs for GST are gone for all businesses, only that will improve the overall tax base.
1. The service provider/business will have to pay GST irrespective of the size of the business.
2. They may or not pay income tax based on the slab they are in.
3. Payments made via cash or payments made via wallets will not generate black money.
The first fundamental problem with small businesses is the benefit of being a small company and they don't have to pay taxes (GST or income). This allows them to grow at the expense of the government rules.
Just remove them, of course, there will be a huge support. But making rules the same for all will increase the tax base.
Since the number of income taxpayers is less. This is the only way of increasing the tax base. more
So after discount also they apply the GST. This is ridiculous.
I do believe this is done deliberately, to benefit more from a profiting perspective.
Also, a key point I would like to make is the government must bring down the GST on items and use a different approach. I suggest the following way.
Let us say government wanted 10% GST on an item sold in the market.
1. OEM sets MRP and pays .25% of x as GST. If selling to a wholesaler add the GST No of the wholesaler.
2. The wholesaler sells the item at whatever value but will pay .25%x GST.
3. The retailers sell the item at .25% of x as GST.
4. For transit or (e-way bills) the service provider pays .25% of x as GST.
So this totals to 10% GST on the item overall.
Now comes the issue of tax evasion. Now GoI must mandate everyone who runs a business to have a GST number.
Don't give slabs to businesses. (Below 20 lakhs nobody pays GST) Most small businesses make profits and also keep the GST amounts collected. The perfect way to profit obnoxiously.
Also, the government of India must ensure the slabs for GST are gone for all businesses, only that will improve the overall tax base.
1. The service provider/business will have to pay GST irrespective of the size of the business.
2. They may or not pay income tax based on the slab they are in.
3. Payments made via cash or payments made via wallets will not generate black money.
The first fundamental problem with small businesses is the benefit of being a small company and they don't have to pay taxes (GST or income). This allows them to grow at the expense of the government rules.
Just remove them, of course, there will be a huge support. But making rules the same for all will increase the tax base.
Since the number of income taxpayers is less. This is the only way of increasing the tax base. more
Viewed by 2091
View all 10 comments Below 10 comments
MRP must include GST.Then there is no confusion and only one rate is mentioned i.e. MRP and there is no hidden cost. more
Aug 16
Hello everyone, this government is for the traders and not for the common man. The traders are getting away with profits galore and now with the plastic ban are selling cloth bags at Rs.40 and 50 each. We are forced to buy these. The bags must be costing them Rs.15/- but here too they are looting the public. more
Aug 15
Yes, GST manipulation is done deliberately, to benefit more from a profiting perspective. more
Aug 13
The MRP includes the GST. So when the item is sold in discount then it should be that of the GST. Where is the question of charging GST again. Otherwise the seller must Deduct the GST from MRP and offer discount on the price after deducting GST from MRP and on the discounted price add the GST paid. The GST paid once cannot be refunded as it is paid to the Government. more
Aug 13
Below 20 lakhs nobody pays GST. The GST payed by end user- Where tax Go. It helps business man to show their business below 20 Lath. some time they decide their whole unit into smaller business units and enjoy Tax and profit. Purchase product with out bills. Hence govt should mandate that, The whole sheller should pay tax for them (smaller Retailer). more
Aug 13
If someone turnover is less then 20 lacs then he pay all gst on his purchase and its not deductable from gst on his sale (as he has no gst on sale)
So gst he paid on puchase has gone to govt more
So gst he paid on puchase has gone to govt more
Aug 13
