---------- Forwarded message ---------- From: krnarayanan2013 Date: Tue, Dec 8, 2015 at 8:28 PM Subject: Fwd: Fw: [alumni-club] What does GST really mean for you?
Subject Fwd: Fw: [alumni-club] What does GST really mean for you? ------------------------------ *From* *Subject:* [alumni-club] What does GST really mean for you? *Courtesy : E**quitymaster.com <http://quitymaster.com>* *What does GST really mean for you?* *Before we delve into the developments with regard to the passage of the bill, let us broadly understand what GST is. GST is an indirect tax that will be levied on manufacture, sale and consumption of goods and services across the country. The existing indirect tax system is highly complicated and inefficient. There are overlapping taxes levied by the Centre and the states. So, GST is expected to create a single umbrella uniform indirect tax code on goods and services across India. It is worth mentioning here that the bill was first introduced by the UPA government in 2009. They failed to get the bill passed. After the BJP government came to power at the Centre, they got a slightly modified version of the bill passed in the Lok Sabha (Lower House of the Parliament) in May 2015. * *If you are sold on the GST story...if you are optimistic that the bill will be passed in the ongoing Parliament session...if you believe that the GS <http://click2.equitymaster.com/t/Bw/Ddc/FXY/ABB6JA/kmM/MTczMjczfGh0dHBzOi8vd3d3LmVxdWl0eW1hc3Rlci5jb20vcmVzZWFyY2gtaXQvcnIvZGV0YWlsLmFzcD9kYXRlPTEyLzI0LzIwMTQmYW1wO3N0b3J5PTImYW1wO3RpdGxlPUlzLUdTVC1hLWJlbmVmaWNpYWwtdGF4LXJlZ2ltZSZhbXA7dXRtX3NvdXJjZT01TUlOJmFtcDt1dG1fbWVkaXVtPW1haWwmYW1wO3V0bV9jYW1wYWlnbj1lLWxldHRlciZhbXA7dXRtX2NvbnRlbnQ9NXdyYXA./AQ/lyuI>T will be a game-changer for the economy and the stock markets...then wait a moment please.* 1. *Will GST boost economic growth? Let's ask a basic economics question. What is it that drives growth in an economy? Economic growth is driven by investments, productivity and consumption. Can a tax reform be the harbinger of economic revival? I don't think so. By reducing fiscal inefficiencies, easing the business environment, GST may improve the economic landscape of the country. And to that extent it may add to the country's economic output. But one must remember that a tax reform cannot form the basis of an economic revival.* 2. *Modi = Magic :: GST = Game Changer? When I think about the enthusiasm surrounding GST, I can't help looking back to the time PM Modi-led BJP came to power at the Centre in May 2014. Mr Modi became the poster boy of India's economic renaissance. It was expected that the business-friendly BJP would bring in the much-needed big bang reforms and change the fortunes of the sagging Indian economy. A year and half later the enthusiasm has subsided. While the economy is in a better state than earlier thanks to lower commodity prices, the pace of government actions have not matched investor expectations. And you can see that from the lacklustre performance of the Indian stock market in the year so far. So, what really happened? Was it a failure of Modi Government ? Or did investors set expectations too high? Whatever be the case, remember the old adage: 'Rome was not built in a day.' Even with GST, it would be a big mistake to expect things to transform overnight. Even if the bill gets passed now and is implemented in the next fiscal, the actual benefits will take time to show. Also, while GST appears pleasing in principle, we do not know the ground level challenges that it may face in a complex country like India. In short, if you build in too high expectations from GST right now, you might be in for disappointment later on.* 3. *Is GST only about tax reforms? I think it is also important to see GST in the context of India's political discourse. GST is not just about tax reforms. The GST deadlock has become synonymous with the country's political deadlock. Investors are slowly losing faith in the ability of the country's legislators to put the economic agenda above political differences. If GST gets legislated, it will send a strong message that the policy making process in India is alive...that the government is serious about economic reforms...that the India story may not be over after all... In that sense, GST may be a powerful symbol of change and may help the government gain the confidence of foreign investors. But it would be a folly if you read too much into it and read too far into the unknown future.* __._,_.___ ------------------------------ Posted by: Harihara Sarma <[email protected]> ------------------------------ Reply via web post <https://groups.yahoo.com/neo/groups/alumni-club/conversations/messages/4229;_ylc=X3oDMTJxZGYzaTJqBF9TAzk3MzU5NzE0BGdycElkAzEzMDg3Mjg5BGdycHNwSWQDMTcwNTg0ODU5MgRtc2dJZAM0MjI5BHNlYwNmdHIEc2xrA3JwbHkEc3RpbWUDMTQ0ODg5MDk1Ng--?act=reply&messageNum=4229> • Reply to sender <[email protected]?subject=Re%3A%20What%20does%20GST%20really%20mean%20for%20you%3F> • Reply to group <[email protected]?subject=Re%3A%20What%20does%20GST%20really%20mean%20for%20you%3F> • Start a New Topic <https://groups.yahoo.com/neo/groups/alumni-club/conversations/newtopic;_ylc=X3oDMTJmZzRibmdwBF9TAzk3MzU5NzE0BGdycElkAzEzMDg3Mjg5BGdycHNwSWQDMTcwNTg0ODU5MgRzZWMDZnRyBHNsawNudHBjBHN0aW1lAzE0NDg4OTA5NTY-> • Messages in this topic <https://groups.yahoo.com/neo/groups/alumni-club/conversations/topics/4229;_ylc=X3oDMTM1MGprYml1BF9TAzk3MzU5NzE0BGdycElkAzEzMDg3Mjg5BGdycHNwSWQDMTcwNTg0ODU5MgRtc2dJZAM0MjI5BHNlYwNmdHIEc2xrA3Z0cGMEc3RpbWUDMTQ0ODg5MDk1NgR0cGNJZAM0MjI5> (1) Visit Your Group <https://groups.yahoo.com/neo/groups/alumni-club/info;_ylc=X3oDMTJmMGVja3Z0BF9TAzk3MzU5NzE0BGdycElkAzEzMDg3Mjg5BGdycHNwSWQDMTcwNTg0ODU5MgRzZWMDdnRsBHNsawN2Z2hwBHN0aW1lAzE0NDg4OTA5NTY-> [image: Yahoo! 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