Talk on GST by Dhiraj Baldota

TiE-Hubli in association with its educational partner, KLS IMER, Belagavi, had organized a 90 minute talk on GST on Monday, 7th December 2015 at KLS IMER Auditorium.

 Dhiraj Chandrakumar Baldota
Dhiraj Chandrakumar Baldota Speaking at Belagavi
Bella Vista Belagavi

The Talk was delivered by renowned practitioner, speaker and writer on service tax and excise, Chartered Accountant Mr. Dhiraj Chandrakumar Baldota, Partner, CL Baldota & Co., Chartered Accountants, Solapur.150 plus participants attended the Talk including members of TiE-Hubli, industrialists, retailers, chartered accountants, academicians and students of finance and accounting.

Mr. Baldota, spoke about GST and its base, GST rates and how it works. He also elaborated on the expected procedural issues and the road ahead. He was of the opinion that GST, would eventually result in higher GDP due to simplification of taxation leading to improved compliance, wider taxation base and reduction in the level of tax evasion. The session was interactive with participants raising a number of queries that were answered by the speaker after the Talk.

Key points he spoke about:

  1. Other than the US, most countries in the world have adopted a GST like tax. Furthermore, according to World Bank, India until recently ranked 142 among 189 countries in the “Ease of Doing Business”. Implementation of GST would go a long way in improving India’s ranking.

  2. GST was conceptually a consumption based taxation system versus the current focus on where goods are manufactured.

  3. Currently for a single product there are multiple levies at different rates in different states. In many cases, certain taxes cannot be set off and hence are added to the cost of the product before it is finally sold. This leads to tax on tax. The GST, as envisaged, will avoid this.

  4. It would reduce distortions in the system by limiting competition among states by granting exemptions and moving of production to states based on the merit of what was efficiently available in that state.

  5. The concept of 1% additional levy was thought of to compensate those states that produced more, consumed less, and would now lose revenues since the focus would be on where the goods and services were consumed.

  6. The GST amendment would be ultimately implemented by the proposed GST Council. For that happen, this process has yet to be completed – Approval by Rajya Sabha, ratification by 50% of the nation’s state assemblies, and then assent by the President. This is expected to be time consuming and the April 1, 2016 deadline would be very ambitious.

  7. The IT backbone needed to implement this amendment is very important. Some states were better prepared than others. This was an area of concern.

  8. Business persons, Academicians, Service professionals would do well to learn the intricacies well before the amendment is passed.

He was of the opinion that GST, would eventually result in higher GDP due to simplification of taxation leading to improved compliance, wider taxation base and reduction in the level of tax evasion. The session was interactive with participants raising a number of queries that were answered by the speaker after the Talk.

 

SHARE

LEAVE A REPLY