The decline in the tax collection, Lower GDP, Complexity in filing & Non-competitive exports have proved a disappointing design of GST. However, according to Punjab FM Manpreet Singh Badal, GST can be redesigned & revisited and this is how the imperfections in GST can be transformed to perfection.
He said, “GST has been a disappointment, and I think there have been some flaw in the design,”
GST regime was introduced hoping that it will elevate the GDP by two percentage points & will increase the tax collections. Besides, it was expected that exports would become cut-throat and GST filing would become simpler. But everything just went contrast, the tax collections decreased, GDP could not meet the expected percentage, filing became too troublesome & tiresome and exports remained unambitious.
Manpreet Singh Badal is a Minister in Congress government and according to him it doesn’t matter which political party one belongs to, but the ultimate goal should be to make India a superpower. He attended 8th “Invest North” summit, headed by Capt. Amarinder Singh and organised by the Confederation of Indian Industry, to present his views about GST 2.0.
“So, what we are talking about is GST 2.0 because, in the last two-and-half years, there have been almost 4,000 statutory amendments in the law. So, if you operate a patient 4,000 times, he is not likely to get well,” Badal said.
“So, I think we need to redesign our GST and if I am not mistaken, the tax collections in the last two years are actually lower than what India was collecting two years back,” he added.
Punjab Finance Minister shed some light on the fact that the growth of the Indian economy by 6-7 per cent clearly indicates growth in the tax collection by 6 per cent or at least four per cent. However, the actual GDP was lower than expected. He asked, “But how come that the tax collection has dropped in the last two years? So, GST has been a disappointment and my own feeling is that we have not been able to keep an ear to the ground,” He added.
He also claimed that stakeholder consultation is not happening and some degree of arrogance within the Government of India is restricting it from admitting and straightening out the imperfections in the GST.
“Go in for knee-jerk amendments like… if there are elections in Gujarat… bring it (GST rates on certain items) down…this is not how countries operate. So, my own feeling is that we have to do a GST 2.0″.
Badal said it does not make a difference which political party one belongs to, but the objective should be to make India a superpower and put forth a question “How do we achieve that?” and answered, “We can only achieve that if we have a system of taxation which is fantastic, first-class. India was not the first country to introduce GST. We are the 161st nation”,
“Let’s redraw it in its entirety because you start making changes in terms of tax rates and so on, it’s not going to cut it. Let’s revisit it again, the whole thing…,” Badal added.
