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GST's promise of one nation, one tax. Has it delivered?

  • Cautioning that such an uneven practice may, in fact, incentivize small businessmen to indulge in unscrupulous trade practices (say, classifying inter-state supply as intra-state) for claiming registration exemption, Singh, thus remarks: “A uniform threshold across India is the best way forward as the same is in line with the founding principles of .”If at all, the Council’s this decision is so factually irrational, then what could be the reason for the Council to consider it in the first place?
  • Citing the recent example wherein, in one case of solar power plants, while Maharashtra AAR applied a rate of 18%, the Karnataka AAR applied 5% tax rate, he says, ” although everyone knew that GST is a new law and would be tweaked in future to improvise, however in last few months entire policy of GST ‘one nation, one tax’ has been changed to each one, decide for oneself.”According to Mohan, recent changes made in GST has basically reduced the entire law into a charade and some of the policies like the Kerala cess, state-wise registration criteria and the separate threshold for goods and services would add to the pan-India complexities for businesses. “
  • For example, in the 33rd GST Council meeting held on 24th February, 2019, GST Council slashed the GST rates on residential housing, but denied developers from claiming ITC.Currently, GST is levied at an effective rate of 12 percent (standard rate of 18 percent less a deduction of 1/3rd of value for land) on normal housing and effective rate of 8 percent (concessional rate of 12 percent less a deduction of 1/3rd of value for land) on affordable housing on payments made for under-construction property, where completion certificate has not been issued at the time of sale.

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