Baby You Can Drive My Car

Who or what is helping drive reverse that truck named GST?

GST has been around for 134 days now. I haven’t written a blogpost for 80 of those. In the interregnum interim, much has changed. Taking up from my last 2 blog posts on GST (here and here), it seems much that I ranted about has been addressed:

  • Rules have been eased for small exporters
  • RCM (reverse charge) is all but abolished, at least for fiscal 2018-19
  • The website has been revamped
  • Some relief from filing returns
  • Life made easy for EOU/ STPI/ EHTP etc. units

However, the proposals from last evening still leave much ground to be covered:

  • Highest tax slab of 28% is still too high
  • Cement, Washing Machines, Refrigerators are still considered luxuries and taxed at 28%
  • No relief for sanitary napkins
  • Caterers and restaurants were taxed at par in the earlier regime. Restaurants are now at 5%, caterers at 18%. Needless to say more caterers will open restaurants now
  • Oh, and those export refund rules, they are something else, for another blog post, maybe?

Some (in)credible thoughts come to mind:

  • Was the Govt experimenting
  • What was the sum total of the thought applied while framing the rules
  • If these roll backs have happened for the common man, was the common man not on the horizon while these rules were framed?
  • And above all, is the Govt working on the notion that it can drive the economy of the nation on the basis of a Learners Licence? (h/t – anonymous)

IMHO, agreeing for once with conventional wisdom, all this easing for the Gujarat elections? Or say till GE 2019? Come July 2019, whither GST?

 

 

 

One Comment

  1. Reverse Charges on Freight Should be split in Two
    1. If the Good are Sold F.O.R as most PSU have made it Condition to quote F.O.R , The Value So declared as Goods Value has incidence of Full Freight in it and GST is Paid on this Value which includes Freight factor too , Then why reverse charge ? As Full Freight Value has been Paid @ Full GST Rates already

    2. For Rest reverse charge can be considered

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