The proposal for the introduction of the Goods and Services Tax (GST) has been hailed by the bourgeoisie. All the associations of big capitalists, CII, FICCI, ASSOCHAM are calling the implementation of GST as the most important and urgent ‘reform’ required by the country to speed up the slowing growth of GDP. They claim that it could add as much as 2.5% to GDP growth.
he GST will mean a uniform tax on all goods and services, barring a few, all across the country and removal of multiple taxes under different heads levied currently by the Central and state governments. Its implementation is getting delayed only due to the differences between the Centre and the states on how the tax collected should be shared and how the transition from the present tax system to GST should be carried out. The GST is a tax on value added at each stage of production and distribution; a producer of goods or a service provider at each stage is allowed to set-off the GST paid on the goods and services purchased by him and is required to pay tax only on the value added by him. The final user will bear the full impact of the GST. The general excise duty on goods and the tax rate on services presently is 12% (raised in the last Union Budget from 10 to 12%). Though the GST rate has not been yet decided, it is likely to be 15-20%.
The bourgeoisie welcomes the GST for many reasons. But the working class and masses of people must be very clear that GST is an indirect tax, and its scope and coverage will ensure that we pay taxes on every good or service purchased, without exception.Read rest of the article at http://www.cgpi.org/hi/node/2680.