Sunday, 18 March 2018
Commenting on the company’s investments, Hemant Bhargava, managing director, LIC of India, said: “In the last three years, we have taken a conscious decision of investing only in the BSE200 companies. But you should know that LIC is an old institution and there are legacy investments about which there is nothing much we can do.”
GST with Multiple Tax Rates: Boon or Bane?editor
The government of any country collects its revenue from taxes; hence for the development of the economy of the state, a well structured taxation system is necessary. If we look at the World Bank report on the ease of paying taxes, India was ranked 172 among 190 countries. The implementation of the Goods and Services Tax has been considered as one of the major steps taken in order to achieve better indirect- tax system. Previously, the taxes were levied at each stage separately, by the centre and by the state at different rates. But Goods and Service Tax (GST), implemented in 2017 was projected at creating a single and unified taxation system which would disrupt all the tax barriers between the state and the country. It was passed for the welfare of everyone but has been criticized by Asian development Bank and many others. The primary reason of it was multiple tax slabs are being used for the calculation of the tax for different goods and services.
The primary objective of the essay is find out whether the GST bill implemented by the Government of India which uses multiple tax rates for different goods and services, is feasible in the Indian scenario. It will also try to find out why the government opted the multiple tax rate system.
THE MULTI RATE STRUCTURE: BOON OR BANE?
The primary reason for implementing the GST was to attain the uniformity in the tax structure of the country so as to free the people from the partiality faced by them. The other reasons were to remove red-tapism, make the taxation system much simpler and impactful. But after analyzing the current GST system, it can be found that this system is also a complex one. The current GST system seems far from perfect.
The critics of this multiple tax systems argue that if the object of imposing the GST was to get the uniform tax structure, then why we have the system which contains the different tax rate(in total seven) for the different goods. The Government says that the complete uniform taxation will be dangerous in the Indian scenario and bringing them under the universal tax scheme of any name will be a great injustice to the people. They have divided the different types of goods such as necessary, luxury goods etc. Those goods which are necessary for human survival and which constitute nearly fifty percent of the Consumer Price Index Basket such as food items. These are exempted from the GST (there will be no tax on these goods). According to GST council the objective of the GST is to ensure the welfare of the common man and if it will of the same rate for every good and service it will be burdensome for them.
Some have suggested that multiple tax rate is disadvantageous to the GST and would neutralize some of the advantages of a uniform tax structure. The reality is that a multiple tax rate in India is inevitable for several reasons. The reason behind it is that the tax cannot be uniform for the items which are used by the different segment of the society. If we consider item such as wheat which is needed for human survival and diamond which can be bought only by rich people and the tax imposed on both the goods be same. The objects of the uniform tax may be achieved but the impact it will have on the weaker section of the society will be very regressive. Though the object of the government is to collect more and more tax but it can't be against the idea of the Socialism. Also, the uniform GST would have caused inflationary affect on the various objects.
Also, in the Indian markets, sometimes two goods, which come under different tax rate, are sold in the same packets such as festive pack of sweets which can contain two different goods (and ideally should attract two different GST rates). In the super market, where the different things are sold and a person who buys goods (having different rates), the process of calculation of taxes become a complex one.
The other problem which was pointed by many people was potential trouble arising from the tax brackets into which nearly identical products and services will fall into. If the two goods or services are supplementary and suppose the GST rate for those two goods are different, the manufacturer company will try to innovate and want to give those services which attract less tax. This will make the compliance of the GST much more difficult. The government has a different view on this, they say that though it is easy for smaller business man to innovate things but it is not for the large scale businesses.
The new GST is a great departure from the GST originally visualized. The present Taxation can't be called GST, in fact it should be called modified GST. The GST is all about universal taxation but the current system does not seem to be universal. But in the Indian scenario, the modified GST looks better, as it tries to achieve the objective of tax neutralization. Also, it tries not to pose too much a burden on common people. The GST is one step forward to achieve a better taxation system and should be considered as a "start of a process".
(Author- Ishant Jaiswal, B.A. LLb. , 2nd year, West Bengal National University of Juridical Sciences, Kolkata)
Compiled by GSTstreet for #GSTManthan
In India, Gudi Padwa is celebrated by people to mark the first day of the Hindu luni-solar calendar. Not just by Maharashtrians and Konkanis, this day is also celebrated as new year by people of Karnataka and Andhra Pradesh as Ugadi. This festival marks the beginning of spring and harvest season. On this day devotees take a holy bath with oil as it is believed that it purifies the mind and soul and only then offer their prayers. After the oil-bath, they also consume neem leaves as it is part of the tradition. It is believed that consuming the bitter leaves purifies the blood and increases one's immunity against diseases. Chaitra Navaratri is also observed for nine days starting from the first day of the luni-solar calendar.
Confederation writes to NJCA Leaders
Dated – 14.03.2018
1. Shri M. Raghavaiyya
National Joint Council of Action of JCM (NC) Staff Side organisations (NJCA) & General Secretary
National Federation of Indian Railwaymen
Leader Staff side NC (JCM)
3, Chelmsford Road, New Delhi – 110055
2. Shri Shiv Gopal Misra
Convenor, NJCA & General Secretary
All India Railwaymen's Federation (AIRF) & Secretary, Staff side,
National Council (Staff Side) JCM
13- C, Ferozeshah Road, New Delhi – 110001
As you may be aware the Govt. of India, Ministry of Finance, has given the following written reply in Parliament for a question asked to Minister of Finance, regarding our demand – "Increase in Minimum Pay and Fitment Formula".
Reply given by Minister of state for Finance:
"The minimum pay of Rs.18000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration".
From the above it is crystal clear that Govt. has gone back from the assurance given on 30.06.2016 by Group of Ministers including Sri Rajnath Singh, Home Minister, Shri Arun Jaitley, Finance Minister and Shri Suresh Prabhan, then Railway Minister, that Minimum Pay and Fitment formula will be increased and for that purpose a High Level Committee will be appointed to submit report within four months.
Now that Govt. has gone back from its assurance, I on behalf of Confederation of Central Govt. Employees & Workers, which is a constituent organisation of NJCA, request you revive our deferred agitational programmes immediately and for that purpose, if necessary, an urgent meeting of the NJCA may be convened.
Source : Confederation
Saturday, 17 March 2018
The President of India, Shri Ram Nath Kovind in his message on the eve of Chaitra Sukladi, Ugadi, Gudi Padava, Cheti Chand, Navreh and Sajibu Cheiraoba has said: -
"On the auspicious occasion of Chaitra Sukladi, Ugadi, Gudi Padava, Cheti Chand, Navreh and Sajibu Cheiraoba, I extend my greetings and good wishes to all my fellow citizens.
Celebrated in a wide variety of ways in different parts of our country, these festivals reflect our diversity and yet underline the unity of the nation. May these festivals strengthen the bonds of fraternity among people in various regions of our country".
Much has been said on the above subject in recent times by some of our leaders and experts on matters concerning LIC pensioners.The significance of some of the recent decisions of the Supreme court on bank pensioners is that that they could bring about a positve response on the part of the Govt .I would like in particular to refer in this connection to two such cases initiated by the Bank of Baroda retirees and decided in favour of the pensioners 1) CA 5525 of 2012 (along with about 15 other CAs clubbed ) (Petitioners ; G palani and others) The issue broadly involved is denial of higher fixation of pension flowing from a particular wage revision by introducing an'explanation'in the pension rules to operate adversely and retrospectively in regard to the fixation of pension on retirement. Officers who retired on or after 1/4/98 and before 31/10/2002 were the affected group. (Similar problem prevails in respect of SBI retirees also affecting 6th/7th bipartite period retirees and the concerned petitions are pending before Delhi HC and SC .in a similar situation pensioners of State Bank of Mysore now merged with SBI also recently got a favourable judgement from the supreme court) By its order dated 13/2/2018 in the above CA 5525 of 2012 the SC has categorically decided the issue in favour of the pensioners. Following the above order the apex bodies of Bank retirees have taken up with the IBA the issue of extending the benefits under the said judgement of 13th Feb.to all similarly placed retirees of ALL nationalised banks since only few banks like BoB ,IOB etc with groups of individuals were involved in the concerned batch of appeals disposed off by SC on 13/2. Let us hope LIC /govt combine will see the writing on the wall and extend benefits of the SC decision in MC jain's matter to all 92-93 retirees of LIC. 2) SLP(c) 5378 to 5381of 2015 ( Vijayan & others vs BOB) This case is related to giving weightage for the period spent in other organisations by 'specialist category' of officers who were recruited with spefic waiver of maxim age limit at the time of their recruitment and with commitment for full pension on retirement. This appeal was also decided in favour of the pensioners by the SC on . It will be interesting to know that following the judgement in this case the IBA ,obviously on the advise of the Govt.has decided to refix the pensions (with payment of arrears ) to the specialized category retired officers similarly placed in ALL nationalised banks. -Vide IBA circular dated 1/2/2018. (LIC may please note this also) It may be mentioned that nearly twenty representative organisations of Bank pensioners and about 6 or 7 apex bodies are functioning. One should compliment them for quietly working for the cause of pensioners and there is no sign of any 'one up' competition amongst them.No wonder therefore they get the reward for their patience in getting relief ,albeit belatedly , through the judiciary. Incidentally as a reciprocative gesture the Bank of Baroda officers' Association chennai had invited .me and shri D Krishnan at a meeting organised by them on 4th Mar.2018 which we attended along with shri M Arunachalam. As for other matters on which bank pensioners are seeking redressal through judiciary, one is the issue of 100% neutralisation on DR. The arguments in their petitions have been completed - vide SLP relating to United Bank employees welfare Assn's pettition along with other clubbed partitions by assns. Of retd officers in three other nationalised banks. The judgement was reserved in August 2017 but not delivered till date. Unlike in our case (LIC pensioners) there is probably no direct petition filed by any individual bank pensioner or any of their organisations for automatic up-gradation of pensions in sync. With periodical wage revisions for in service employees. I have furnished the above updated information for the attention of LIC pensioners many of whom do not seem to appreciate that the chances of our success in realising our demands will be brighter only when - the similar problems of bank pensioners are sorted out through judiciary or otherwise . -- GN Sridharan
The Centre today informed the Supreme Court that in the “interest of the nation”, it will not damage the mythological Ram Sethu for its Sethusamudram Ship Channel project.
The Union Ministry of Shipping, in its affidavit, told a bench headed by Chief Justice Dipak Misra that the PIL filed by BJP leader Subramanian Swamy against the Sethusamudram project can now be disposed off by taking note of its stand.
“That the government of India intends to explore an alternative to the earlier alignment of Sethusamudram Ship Channel project without affecting/damaging the Adam’s Bridge/Ram Sethu in the interest of the nation,” the affidavit filed by the ministry said.TOP COMMENT
Stop using the word “mythological ” , there are hundreds of evidences of Ram and Ramayan.
Will you call Jesus and Bible as Mythology ?Abhishiek Ghosh
It also said that dredging Rama Sethu will have socio economic disadvantages and it would not be in the interest of the nation.
Additional Solicitor General Pinky Anand, appearing for the Centre, said that the Centre has filed the response in pursuance of the earlier directions and the PIL can now be disposed off. Swamy had filed a PIL against the ship channel project and had sought direction to the Centre that the mythological Ram Sethu be not touched.
Most of us do not know why these festivals are celebrated.However every one enjoys the festivals and the extravagant celebrations.It would be interesting to find out their background from a scientific, logical, historical and pouranic points of view.