GST collection is been positive for a long time and now is the time, that the government should think upon the correct and optimum usage of the GST tax collections.
It may be one of the successful tax regime implementations in the world as quickly as it can get with surplus tax collection at the end of the year. From all, this one must learn some tactics implemented by the Indian government.
Any hopes that a decrease in tax rates for consumption class i.e upper and middle class would translate into votes. A primary reason is that this section of people are educated and they are hard to be manipulated by candy policies.
While most such beneficiaries would not participate in the biggest festival of democracy and even if those who do would cast a well informed and analyzed vote. In sharp contrast to this, funding low-wage employment would definitely transpire into positive votes for the government.
It also won’t be correct to say that India has a high tax rate, in fact, it is a country with one of the lowest tax-GDP ratios, owing to a large number of free items and offers.
The problem is with the government services that are in a dire state because of things like lack of staff or unskilled staff and delayed deliveries.
Rather than focusing on less-needed things like high-speed roads or six-lane highways, the government should rather declare basic services like safety and security, adequate education and fast and timely justice the fundamental rights of every Indian.
The high tax generation of 6000 crores will definitely lead to extra jobs and employment sector will rose to betterment. It is the right time to give some introspection to the extra revenue.
The surplus amount will be seen directed towards the job opportunity under the GST regime. Let us see the final impact of extra GST revenue by the time 28th GST council meeting ends up.