The GST baby is out of incubator in India. It appears from various reports that the GST rollout is mostly successful in it's implementation, except few technology glitches.
Now, is the time to measure the results against the goals? Or is it heading in the right direction towards the goal of "Achie din"? Or is it helping to balance fiscal position of India?
To answer all these questions, one needs to look at one year of GST performances and GST indicators.
Arun Jaitely climed the Revenue of Rs 95,000 Crores for the first month GST in place, for July 2017. However, as usual, the minister failed to say the Media that there is this Input Tax Credit, which is allowed as part of GST regime, filed by the traders are at Rs 62,000 Crores. Although the Govt questions the genuineness and validity of the huge ITC filing, it must provide the ITC for GST to succeed in the forthcoming months and keep the Credibility of Govt.
If the Govt refuses to recognize the ITC of July, the risk that traders will look to do business outside GST, and that again threat to the macro economy.
What is GST sterilization? Well, Govt attempts to bring as much informal economy into formal economy. Implementation of GST is the first sterilization step towards this. The Sterilization is success. Will the stabilization of GST becomes success or not, would not be known until a year later!
Now, is the time to measure the results against the goals? Or is it heading in the right direction towards the goal of "Achie din"? Or is it helping to balance fiscal position of India?
To answer all these questions, one needs to look at one year of GST performances and GST indicators.
Arun Jaitely climed the Revenue of Rs 95,000 Crores for the first month GST in place, for July 2017. However, as usual, the minister failed to say the Media that there is this Input Tax Credit, which is allowed as part of GST regime, filed by the traders are at Rs 62,000 Crores. Although the Govt questions the genuineness and validity of the huge ITC filing, it must provide the ITC for GST to succeed in the forthcoming months and keep the Credibility of Govt.
If the Govt refuses to recognize the ITC of July, the risk that traders will look to do business outside GST, and that again threat to the macro economy.
What is GST sterilization? Well, Govt attempts to bring as much informal economy into formal economy. Implementation of GST is the first sterilization step towards this. The Sterilization is success. Will the stabilization of GST becomes success or not, would not be known until a year later!
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