It is beyond understanding how going back in reverse direction by providing big reliefs for buyers of artificial and real jewellery in Goods and Service Tax (GST) will help normal members of public and traders who cannot in general afford to purchase jewellery. Even artificial jewellery is a luxury item which never required tax-cut. Raising limit of non-requirement of PAN number from Rs 50,000 to 200000 will make investment of black money in jewellery convenient.
Government should provide filing of quarterly GST-returns for all assesses rather than only for small traders requiring tax-deposit on monthly basis. GST-rates should be altogether rationalised at 10, 30, 50 and multiples of 100 per cent abolishing concept of cess altogether in a manner that most commodities may be under 10-per cent slab. Unfinished products or parts to be used in final manufacture can be kept at reduced 10-per cent slab abolishing concept of draw-back. Increasing minimum tax-slab from 5 to 10 per cent may look little harsh, but will provide practically much more relief by withdrawal of higher slabs at 12 and 18 per cent. If GST on service is reduced to 10 per cent, then scope of tax on service can be reduced from present 20 lakh per annum to five lakh per annum with those availing service worth more than five lakhs required to deposit GST directly to public-exchequer rather than routed through service-provider. Certificate of GST payment can then be provided to service-provider in the manner TDS certificates are given in Income Tax Act. Service-providers then may deposit GST only on services where GST might not have been deposited by those availing service.
Madhu Agrawal
(The views expressed by the author in the article are his/her own.)
