One year on, GST is succeeding and growing

[Kiran]

1. Within one year of GST launch, 48 lakh new enterprises have been added as compared with 66 lakh enterprises registered in all these years since Independence. This may be attributed to the simple procedures adopted under GST.

2. According to the Economic Survey, there is a 50 per cent increase in unique indirect tax payers under GST compared with the pre-GST system. This is a landmark achievement and proof that India is fast transforming from a tax non-compliant society to a tax-compliant one.

3. Increase in tax revenues. The initial concerns were of course born out of the roller-coaster nature of GST collections. But with ₹1 lakh crore in April 2018, those concerns have been finally put to rest.

4. If there is one thing that differentiated the NDA Government’s approach to GST compared to the UPA’s approach, it was the approach of partnership with the State governments.

Prime Minister Modi has hailed GST as a great example of cooperative federalism, where all States decided to take a unanimous decision in the interest of the nation. A complex and huge tax reform like the GST would not have been possible without cooperation of State governments and a decisive leadership at the Centre. The GST Council is India’s first real federal institution and has lived up to its expectations so far and has responded proactively to transitional problems faced by industry and trade.

Bottomline:

As Max Weber puts it, “Reform is the slow boring of hard boards.” Most governments pushing reforms end up bearing the political costs upfront and early, with the benefits evolving over the medium term. That requires a certain determination and belief in the political leadership and Modi has certainly delivered that despite all the petty political potshots of ‘Gabbar Singh Tax’, etc.

https://www.thehindubusinessline.com/opinion/columns/one-year-on-gst-is-succeeding-and-growing/article24671693.ece

[katti]

20 minutes ago, Kiran said:

1. Within one year of GST launch, 48 lakh new enterprises have been added as compared with 66 lakh enterprises registered in all these years since Independence. This may be attributed to the simple procedures adopted under GST.

2. According to the Economic Survey, there is a 50 per cent increase in unique indirect tax payers under GST compared with the pre-GST system. This is a landmark achievement and proof that India is fast transforming from a tax non-compliant society to a tax-compliant one.

3. Increase in tax revenues. The initial concerns were of course born out of the roller-coaster nature of GST collections. But with ₹1 lakh crore in April 2018, those concerns have been finally put to rest.

4. If there is one thing that differentiated the NDA Government’s approach to GST compared to the UPA’s approach, it was the approach of partnership with the State governments.

Prime Minister Modi has hailed GST as a great example of cooperative federalism, where all States decided to take a unanimous decision in the interest of the nation. A complex and huge tax reform like the GST would not have been possible without cooperation of State governments and a decisive leadership at the Centre. The GST Council is India’s first real federal institution and has lived up to its expectations so far and has responded proactively to transitional problems faced by industry and trade.

Bottomline:

As Max Weber puts it, “Reform is the slow boring of hard boards.” Most governments pushing reforms end up bearing the political costs upfront and early, with the benefits evolving over the medium term. That requires a certain determination and belief in the political leadership and Modi has certainly delivered that despite all the petty political potshots of ‘Gabbar Singh Tax’, etc.

https://www.thehindubusinessline.com/opinion/columns/one-year-on-gst-is-succeeding-and-growing/article24671693.ece

Govt point of view it has to be success anyway... tax anedhi we have to pay... no other option... adhi BJP vallu chesina Congi vallu chesina... but the hardships of people in this whole process anedhi Q... should we not have done a better job to reduce the hardships of people? Also did prices of the products come down in the country as was told by govt? don't understand why no one talks on these points...

[Kiran]

25 minutes ago, katti said:

Govt point of view it has to be success anyway... tax anedhi we have to pay... no other option... adhi BJP vallu chesina Congi vallu chesina... but the hardships of people in this whole process anedhi Q... should we not have done a better job to reduce the hardships of people? Also did prices of the products come down in the country as was told by govt? don't understand why no one talks on these points...

Yes some companies passed on tax benefits, some companies exploited it and increased rates and blamed it on GST so people had to suffer. Also another -ve is price increase on some daily usage items which govt. noticed and reduced now, may be Jaitley is more stubborn and we needed a Piyush to do it. Ultimately as with any reform initial effect will be there and things normalize over time. Some businesses might like it bcoz its single tax need not deal with multiple taxes, some businesses might hate it as they became tax compliant for first time and loosing their profit margin.

[LuvNTR]

anni rate lu penchi dobbaru eeda gst valla. deenini achievement ga cheppukuntunnara. 

[SeemaSatthaa]

Uffff........Tax perigithey income peruguthundhi gaa... deeniki Modi uncle enduku ? Country income perigithey evariki kavaali ? Moreover, wealth distribution, percapita income, GDP growth...several factors are there. Eee bhakths ki eppudu artham avuthundi inkoka angle lo kuda choodaalani... 

Infrastructure, Sanitation, welfare, Rupee value has stayed the same way if not became worse. No significant improvement in any sector at all. Instead people faced hardships with sloppy and amateur execution of GST & DEMO. 

The biggest disappointment of the century NAMO. Disaster.... !!!! 

[Vinay NTR]

Lolll. Real estate lo ...especially apartment builders meeda eenadu oka pedda story rasadu ela janalni mosam chestunnaro gst chepukoni. 

[SeemaSatthaa]

Saantham 10gipoyina Inka guddiga supporting aaa... Modi will get the disappointment back very soon... 

[dusukochadu]

Modi propaganda shuru  

[vinayak]

GABBARSING Tax it's not GST

[Naren_EGDT]

Worst thing to happened for india. Nris like you may not understand the impact on people here. People are getting robbed in every purchase they do and they are helpless. No clarity and all confusion on tax% on diff categories.

 

Businessman looting common people and getting tax back to their accounts whatever little they paid. Many loop holes.

 

Biggest failure from arrogant n brainless modi.

 

Aam aadmy will bury bjp in 2019

[Naren_EGDT]

2 hours ago, dusukochadu said:

Modi propaganda shuru  

Ppl getting robbed everywhere with gst.modi propaganda won't help. Gst itself will bury bjp in 2019

[vinayak]

6 hours ago, Kiran said:

1. Within one year of GST launch, 48 lakh new enterprises have been added as compared with 66 lakh enterprises registered in all these years since Independence. This may be attributed to the simple procedures adopted under GST.

2. According to the Economic Survey, there is a 50 per cent increase in unique indirect tax payers under GST compared with the pre-GST system. This is a landmark achievement and proof that India is fast transforming from a tax non-compliant society to a tax-compliant one.

3. Increase in tax revenues. The initial concerns were of course born out of the roller-coaster nature of GST collections. But with ₹1 lakh crore in April 2018, those concerns have been finally put to rest.

4. If there is one thing that differentiated the NDA Government’s approach to GST compared to the UPA’s approach, it was the approach of partnership with the State governments.

Prime Minister Modi has hailed GST as a great example of cooperative federalism, where all States decided to take a unanimous decision in the interest of the nation. A complex and huge tax reform like the GST would not have been possible without cooperation of State governments and a decisive leadership at the Centre. The GST Council is India’s first real federal institution and has lived up to its expectations so far and has responded proactively to transitional problems faced by industry and trade.

Bottomline:

As Max Weber puts it, “Reform is the slow boring of hard boards.” Most governments pushing reforms end up bearing the political costs upfront and early, with the benefits evolving over the medium term. That requires a certain determination and belief in the political leadership and Modi has certainly delivered that despite all the petty political potshots of ‘Gabbar Singh Tax’, etc.

https://www.thehindubusinessline.com/opinion/columns/one-year-on-gst-is-succeeding-and-growing/article24671693.ece

[Kiran]

23 minutes ago, Naren_EGDT said:

Worst thing to happened for india. Nris like you may not understand the impact on people here. People are getting robbed in every purchase they do and they are helpless. No clarity and all confusion on tax% on diff categories.

Businessman looting common people and getting tax back to their accounts whatever little they paid. Many loop holes.

Biggest failure from arrogant n brainless modi.

Aam aadmy will bury bjp in 2019

ok let's see

yes there are few revisions of prices, so some might exploit. Majority daily items are getting into 2 tax slabs now. Hopefully it will be optimized further.

[Andhrudu]

please don't attribute this GST credit to modi .... this bill has been in official discussions from 2006 in both the houses of parliament.  

modi is like we compare with police catch villains in old movies at the end of movie and get the whole credit though hero fought till then 

[Venkatpaladugu]

GST implementation doing by Infosys.. Few of my colleagues invloved in implementation and development.. Only the feedback they have given as "in PMO itself people doesn't have complete picture of GST mechanism from both ends" .. Another failure of faku.. 

[Venkatpaladugu]

10 hours ago, Naren_EGDT said:

Worst thing to happened for india. Nris like you may not understand the impact on people here. People are getting robbed in every purchase they do and they are helpless. No clarity and all confusion on tax% on diff categories.

 

Businessman looting common people and getting tax back to their accounts whatever little they paid. Many loop holes.

 

Biggest failure from arrogant n brainless modi.

 

Aam aadmy will bury bjp in 2019

I have seen many people discussing about their business impact(worse) after GST implementation.. Especially small scale 

[uravis]

Tintinchukovatame baffas  target ithe fully achieved

[Kiran]

12 hours ago, Andhrudu said:

please don't attribute this GST credit to modi .... this bill has been in official discussions from 2006 in both the houses of parliament.  

modi is like we compare with police catch villains in old movies at the end of movie and get the whole credit though hero fought till then 

Can we say the same for pattiseema and polavaram?

end of the day who implements in their time gets the credit or blame. Congress didn’t have guts.

[Kiran]

4 hours ago, Venkatpaladugu said:

I have seen many people discussing about their business impact(worse) after GST implementation.. Especially small scale 

Yes small scale will be biggest hit because of tax compliance, biggies more or less payed corporate tax before.

[sonykongara]

GDP baga perigindi - MODI

avunu gas, diesel, petrol baga perigayi ade GDP ante

[swarnandhra]

12 minutes ago, sonykongara said:

GDP baga perigindi - MODI

avunu gas, diesel, petrol baga perigayi ade GDP ante

good one

[vinayak]

[vinayak]

 

[Babu]

Even though I support the idea of GST but 

 

 

GST dented exports, demonetisation led to decline in MSME sector: RBI study

 

Posted By: Madhuri Adnal

Published: Sat, Aug 18, 2018, 6:18 [IST]

   

New Delhi, Aug 18: An RBI study has found that the controversial note ban imposed in November 2016 has led to further decline in the already falling credit to the MSME sector, while GST rollout has not made any significant positive impact on overall credit to the sector but has deeply dented their exports.

 

 

 

The credit disbursal to the MSME sector has, however recovered a tad since the lows of 2017 to reach the mid-2015 level, notes an RBI report called the Mint Street Memo.

 

Though micro-credit, including loans by banks and NBFCs to the sector has grown in recent quarters, exports have been hit badly since the GST implementation.

Also Read | RBI to pay Rs 50,000 cr dividend to govt for FY18 in line with Budget estimate

The MSME sector constitutes a vast network of over 63 million units and employs around 111 million people, contributing around 30% to the GDP, accounting for about 45% of manufacturing output and around 40% of total exports.

"The MSME sector has witnessed two major recent shocks, demonetisation and introduction of goods and services tax. For instance, contractual labour in both the wearing apparel and gems and jewellery sectors reportedly suffered as payments from employers became constrained after note ban. Similarly, GST led to increase in compliance costs and other operating costs as most of MSMEs were brought into the tax net as over 60 per cent of them were not ready for the new tax regime," said the report.

But on a positive note, a Sidbi study has found that after note ban and GST introduction, relative credit exposure initially declined for most MSMEs but recovered by March 2018. A major obstacle for growth of MSMEs is their inability to access timely and adequate finance as most of them are in niche segments where credit appraisal is a major challenge.

According to an International Finance Corporation (IFC) estimate, the potential demand for the MSME finance is about USD 370 billion as against the current credit supply of $139 billion, resulting in a finance gap of $230 billion which is equivalent to 11% of GDP.

About 97% of MSMEs operate in the informal sector, and their share of informal sector in gross output of MSMEs is about 34%. As per National Accounts Statistics, the share of informal sector manufacturing MSMEs in total GDP is around 5 per cent.

Also Read | RBI Monetary Policy: Central Bank hikes repo rate by 25 bps to 6.50%

The annual growth of bank credit to MSMEs decelerated gradually during 2015 to 1.6% in April 2016 before recovering till October 2016. The deceleration during 2014-16 was partly due to overall economic slowdown, rising NPAs and reclassification of food and agro-processing units from MSME category to agriculture sector.

Credit growth fell significantly and turned negative during November 2016-February 2017. Therefore, it seems that demonetisation accentuated the slowdown in credit growth, particularly to industrial sector. However, credit growth to the sector recovered after February 2017 to reach an average of 8.5 per cent in January-May 2018.

The share of credit to MSMEs in overall bank credit declined steadily to around 14% by end-March 2018 from about 17% in 2007, partly due to over-lending to large corporates (now stressed) in the second half of 2000s.

Additionally, the share of credit to medium enterprises dropped significantly also. NPA from the sector has increased over time, with the level being much higher for PSBs.