New GST Rates | Can Gabbar Singh Tax become Good & Simple Tax? | Akash Banerjee - YouTube

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Once upon a time in a village called Ramgarh lived a king and a queen...

This is no fairy tale ... it's a horror!

Villagers somehow manage to deal with poverty. Many are into farming, few in the business of transportation.

Her name is Basanti, btw. Basically life is not easy.

Life gives them lemons too often and they usually blame that upon Nehru. How else can they cope with harsh reality?

Then a new figure enters Ramgarh, Gabbar he is called. Gabbar demands 3 times the tax.

Why sholay mixed with lagaan?

Bhuvan defeated the British at their own game but Captain Russell left a legacy of 'sorry', 'thanks' and 'lagaan'.

People in Ramgarh questioned Gabbar over implementation of GST.

Seems like tax rate is random, some items at 12% others taxed at 18% then 24% etc.

Too much complication. Still, GST is a requirement... but could be implemented better.

Gabbar was like, I'm sorry but this is the Kanoon.

Who can dare speak against Gabbar? Thakur also couldn't do much, except scream in vain.

It may be hard but public is coping with GST. Some villagers defended GST, saying: The intention is good.

Many small businesses closed. And the pandemic made it worse. Yet, the tax remained.

Gabbar got what he wanted while people suffered. But Gabbar wanted more. He returned and again demanded:

People were like, How much more? The condition of village hasn't changed much.

Gabbar had a list... he read from it: Roasted and salted peanuts 12% GST and more items to be taxed.

With that Gabbar announced 5% GST on daily use food like rice, wheat, flour.

Tetra packs (for beverages, fruit juices, etc.) will now be taxed at 18%.

Cheap, less than 1000 Rs, hotel room will attract 12% tax now.

Hospital room previously taxed 0% now also will be taxed. Start exercising!

But that is only one side of the story. Not only small items, tax on expensive finished product like diamond increased slightly.

Now you can't afford diamonds. Tax on cable car reduced from 18% to 5%. What a masterstroke!

Some people are still happy. Or pretending out of fear?

Indian medical association urged FM Nirmala Sitharaman to grant GST exemption to bio medical waste treatment facilities.

Healthcare will become more expensive.

Confederation of all India traders have declared nationwide agitation from Bhopal on 26th July and their demand to make GST rules easy.

Bringing unbranded food and other products under GST would increase compliance burden.

This is not good for ease of doing business. But who will listen to this body of traders? They must have also supported Gabbar before.

GST was implemented 5 years ago. The move was celebrated as masterstroke by everyone and promoted as financial independence.

Economists thought GST regime would boost GDP by 2%.

5 years later we are still deciding GST rates on various products. It was supposed to be a simple tax structure.

But it's not easy, for example, pizza at restaurant would attract 5% GST. But delivered would be taxed 18%.

GST on toppings is 18%. Some pizza companies sell cheese as toppings too, cheese otherwise a processed food: 12%, but as topping 18%.

Same with milk and lassi, flavored milk is taxed at 12%.

Tax on round Roti is 5% but on triangular Parantha is 18%.

For common man and businessman both, the GST is not easy. The tax is so complicated that it is a necessity to hire tax consultant.

It is an uphill task for majority of MSMEs to maintain IT solutions.

Big businesses have all the resources to handle those complications. How will small business claim input tax credit refund when it's so difficult?

Today, no one calls GST a masterstroke. Nobody is saying it is a major success.

Everyone agrees that the idea of GST was good. Uniform tax system was required since decades.

Introducing GST was great masterstroke but execution of it not so much. GST was forced on people.

Good news is that tax collection has increased. Inter-state movement of goods is now easier. One can't evade the tax because of compliances.

If GST has to be truly successful then it has to be made simpler. A new GST 2.0 with positive changes can be introduced but will Govt do it?

Because of GST relations between centre and states have deteriorated.

On many occasions, centre has not been able to give states their share of GST in time. (Centre has to give GST compensation to states for 5 yrs).

States have to rely on centre to get their part of GST. At least 12 states say to continue GST compensation. GST has not boosted states' collections as per India ratings on Economic times.

How will centre give compensation to states?

Since GST collection was not as high as expected, so everyday items, from small to large, are brought under GST.

GST was supposed to be a unified system but the rates are still being toyed with.

There are so many compliances to stop tax evasion that following those compliances has become business and industry of its own.

CAs are pleased. Businesses not so much. GST has complicated doing business which is not good in long term.

What next? Will fear stop people from asking questions? Where are Jai and Veeru to save the people from the tax? Can't find them as of yet...

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