This implementation is a very hasty one. Go and talk to small-biz-people and you will see the fear and confusion GST instates. Frankly, its scary to me and I have studied quite a bit of tax. Compared to the previous complicated procedures, the new procedures are equally complicated. But these also deviate from previous definitions. And some terms on taxation have changed and have become ambiguous - like the definition of "Supply"
Its like "My manager(Govt) is making us(small-biz) fill status spreadsheets for 2-3 hours out of 8 every day. Why? Just because they can"
And I also worry about the IT infrastructure being implemented for filing these new invoices. The government has some very smart and efficient in house engineers - but we don't know if they made the backbone or if they outsourced it to the likes of TCS/Infy. For one, I have known a TCS tax filing implementation that fails regularly on the last few days of filing - they do some very bad implementations.
I get to talk to some small biz owners here, and very few of them had any clarity on GST as on 30jun. Most of them registered for GST numbers, but know nothing about compliances beyond that. Many don't even use software to create invoices. I got panic calls on "best/good/budget software for GST" on the last day. They didn't know what they needed. Nobody reads the rulebooks and even if they did, it would result into a throbbing headache with no output. So they rely on info from each other and the chartered-accountants who see their business booming.
Could it have been done with less haste? NO! But it could have been done with simpler procedures and a couple of months of education.
Infact, GST will not be a failure - Even if it is complicated, businesses are just used to adhering unnecessary complicated govt policies - they will adjust soon. But GST is hurting many small businesses right now. This will either lead to a bigger and newer black/gray money market - defeating the purpose do demonetization. Or it will make every Indian pro-tech. I'd assign equal probabilities to both outcomes, there is no middle ground now.
What we need to see if it becomes "One nation one tax" or "One nation, 29 taxes"
PS: For the record, I do believe that India has the best PM on this planet. I am a pro-BJP and anti-CONG (and anti-AAP). Please don't associate my criticism with political sides.
I don't live in India, but I have an interest in their politics, so I have a question for you:
How can you justify Modi as the best prime minister in the world when he tacitly approves the killings of Muslims? A group he should also be the leader of.
The Hindu extremists are emboldened under his watch. In many areas, India is going backwards under his watch.
He's far from the best in the world. You just haven't bothered to look.
people are getting lynched every week because of stupid cows and Modi's silence condoned that behavior. It was only after coming back from US/Netherlands did he mention anything about it. It's still not acceptable IMO. people should be allowed to eat whatever they want.
He's not the best PM but he has the best PR team in the world.
Doesn't matter what I say. I am a programmer, not a political pundit. But I do know that perceiving any country's leadership just based on news is a very bad idea.
To understand and perceive the reality, you have to live in India for few months (say 6 months but even 2 years may feel less). And try to live as a commoner here, get some job (not volunteer/NGO work), travel-to-work, travel to different cities/villages, go to festivals, talk to people and allow typical intrusive social behavior.
Aren't you doing the same though? Calling him the best PM India ever got is one thing, calling him best PM in the planet is, as you put it, "a very bad idea".
You do not have any information about PM from other countries, besides what you read in news.
In the last couple of days in Toronto, Canada there have been attacks which have the hallmarks of terrorism. 7 stabbings including a machete used to cut the face of a woman and a regent park shooting leading to death.
Trudeau has not spoken out against these. He has recently contrasted Canadian immigration with US immigration, and in the process is inviting extremists from all over the world.
These are signs that Islamic extremists are emboldened under his watch. In fact ISIS directly called for attacks on Canadians on Canada day. Trudeau has not spoken out against these either, so he tacitly approves the killing of Canadians.
As far as India goes, there were spontaneous NotInMyName protests without Modi being present. There are more killings in all the muslim middle-east countries in a single day, than in India in a month. It is not going backwards.
There will be costs that will surface sooner. May be they will reflect in accounts in the next quarter :)
But as I said, they are replacing an old-complicated tax system with a new-complicated tax system. Indians are used to living with complicated systems. They will adjust soon. Just hope that the IT backbone does not falter meanwhile
It is complicated for sure, and it took me some time to get my head around it. But it seems to me that the complications arose because of compromises needed to be done to get this passed. Also, the current dispensation is to make it simpler over time.
This GST was probably what was possible right now and full marks to the govt. for getting it done. They made compromises which will nullify immediate gains, but at the same time made sure that the structure is put in place to get full benefits over time.
That being said, even in the current form it seems to be a huge jump from what we had.
You are right! While they can improve from there, anything strong would not have sold, not just now but even later. This govt has a very strong mandate and it would have been stupid to wait for a stronger one.
Its like "My manager(Govt) is making us(small-biz) fill status spreadsheets for 2-3 hours out of 8 every day. Why? Just because they can"
And I also worry about the IT infrastructure being implemented for filing these new invoices. The government has some very smart and efficient in house engineers - but we don't know if they made the backbone or if they outsourced it to the likes of TCS/Infy. For one, I have known a TCS tax filing implementation that fails regularly on the last few days of filing - they do some very bad implementations.
I get to talk to some small biz owners here, and very few of them had any clarity on GST as on 30jun. Most of them registered for GST numbers, but know nothing about compliances beyond that. Many don't even use software to create invoices. I got panic calls on "best/good/budget software for GST" on the last day. They didn't know what they needed. Nobody reads the rulebooks and even if they did, it would result into a throbbing headache with no output. So they rely on info from each other and the chartered-accountants who see their business booming.
Could it have been done with less haste? NO! But it could have been done with simpler procedures and a couple of months of education.
Infact, GST will not be a failure - Even if it is complicated, businesses are just used to adhering unnecessary complicated govt policies - they will adjust soon. But GST is hurting many small businesses right now. This will either lead to a bigger and newer black/gray money market - defeating the purpose do demonetization. Or it will make every Indian pro-tech. I'd assign equal probabilities to both outcomes, there is no middle ground now.
What we need to see if it becomes "One nation one tax" or "One nation, 29 taxes"
PS: For the record, I do believe that India has the best PM on this planet. I am a pro-BJP and anti-CONG (and anti-AAP). Please don't associate my criticism with political sides.