GST vs Demonetization: Step to increase Tax Payers?

GST VS Demonetization

GST VS Demonetization
GST & Demonetization introduced by the revolutionary leader (Prime Minister) of India, Mr. Narendra Modi. GST is the step to make the individuals pay tax on their supply of products or administrations to net out the expense they have paid on their information sources. Demonetization is a move to curb black money out of the economy to make it cashless and commerce using e-wallets. Even though in active sense, people will see only distress, if the cashless economy is implemented, India would be the best growing economy in the World. This is achieved by curbing corruption and hassle free tax collection from the sources. India would see leadership with new youth and politicians with no interests in personal profits, as the cash flow is monitored.
The recent news in India confirmed that the withdrawal of higher denomination notes did not help as higher officials at Government financial institutions helping corrupt people convert their invalid currencies, known as black money. The next move is told to be the cashless economy to prevent this.

The other move is to get the gold out of individuals who converted black money into Gold. People in India are allowed to 250grams (31.5 Pavan) of gold each for an individual Women and 500 grams (62 Pavan) for married Women.

Is black money really curbed completely? The answer is a big ‘NO’
GST

It is a big no, because the people who are corrupt are still owning financial institutions like chit funds, gold loan institutions, bus operators, tourist operators, hotels, Lodges, Cinemas, Cinema Producers, temples, donations, clothing factories, NGOs, charities etc to name a few. What these people do is, they convert the black money into legal money by furnishing customer information, who has never visited them. The Aadhaar card introduced is a fail as people ask for their Aadhaar card and misuse it. The biometric authentication is not implemented.

How can Narendra Modi fix this to guide the nation to a successful future?
The best way to fix this is to demonetize completely and have everybody an NFC device with biometrics to transact. While high paid individuals paying a lot of money for taxes, the demonetization move has brought a lot of money back to the Government. Keeping the lowest denominations for the poorest to transact and forcing others to use the NFC biometric device will also fail due to the misuse of poor people’s privileges to convert the black money into lower denominations. Government can now publish Modi’s move to be a fail or to succeed, Indian Government has to provide every poor Individual the NFC with Biometric devices or a mobile with these features and forcing salaried family to purchase a mobile or the nfc device with biometrics. Removing all the taxes and having tax per transaction implemented would increase tax revenues.

What is the change with biometrics and NFC devices?

Biometrics Identification for Demonetization

Crime rates down, courts will have low cases to handle, poor farmers get more profit, banking institution frauds go low, banking officials cannot play around, greediness goes low, prices go down as corrupt people cannot curb poor people’s money, Indian currency will raise, economic growth rockets high, farming gets encouraged, green concept goes popular, more vehicles per house will be limited, etc

Unemployment

This will be a question for the IT industry. With cloud and automation implemented, very less skilled people (people who can fool customers) will remain in IT business. With more people moving into farming, this will be taken care, with hopes of India becoming a major food exporter.

LOOKING FORWARD TO SEE INDIA AS A SUPER POWER IN THE WORLD

GST VS Demonetisation Gov Team
FM  Arun Jaitley was right on target when he said, while giving over the Economic Times Awards for Corporate Excellence to the champs of 2016, that changing the outlook that it was keen to not pay one’s expenses is a noteworthy test before the nation. He said demonetization was intended to address the issue. It may well have been intended to, yet will flop in this assignment, given the energetic promptness with which Indians have stored the main part of the demonetized notes as of now and given the straightforwardness with which old cash can be changed for new legitimate delicate in the casual market. Nonetheless, one other change that the FM is seeking after with constancy, the Goods and Services Tax, is probably going to assume a huge part in making Indians tax compliant.
So as to claim include charge credit, makers would need to get their information sources just from providers who raise a receipt and demand imposes. These providers, thus, would acquire their contributions from different providers who additionally pay charge on their yield. Once everybody gathers charge from the individuals who buy their provisions, the volume of generation that goes outside the duty net would fall obviously. Once most yields get reported, so would the related salary. In this manner, traveling to GST is a change that would grow the base of both immediate and circuitous duties. In any case, for this possibility to be understood, the legislature must do two different things also. One is to subsume stamp obligation under GST, regarding enrollment as an administration rendered for an expense on which benefit duty is charged. Business foundations would then report their actual esteem, in order to expand the information impose credit by method for duty paid on enrollment expenses. This would benchmark land exchanges when all is said in done.

Another key change required is to lower charge rates and raise the salary edge to pay obvious levels of assessment. On the off chance that the cost of consistence is altogether bigger than the cost of rebelliousness, individuals will discover approaches to avoid charge.

Table of Contents

About Author

Comments

comments