GST Will Be Overhauled and Simplified, Torture by Financial Institutes Will Be Stopped: Prime Minister
It refers to Prime Minister on April 19, 2019 addressing traders at Talkatarora Stadium at New Delhi making poll-promises like rupees 50 lakh loans without collateral security, pension and credit-cards for traders, confessing difficulties faced by traders in implementation of GST. But, nothing will improve till GST-structure is totally overhauled in one go rather than in parts to the extent that traders and others under GST network may be able to file GST-returns themselves that too in a manner that tax-evasion for GST and subsequently Income Tax may not be possible.
There must be only two basic GST-slabs of 10 and 30 percent respectively for commodities and services of day-to-day use and of long-term use with slabs of 0, 3, 5, 12 and 18 percent clubbed in a 10-percent slab with 28-percent slab marginally increased to 30-percent. For extra-luxurious commodities presently attracting cess, additional slabs in multiples of 50 or 100 percent may be there abolishing the concept of cess. Those under GST network may be required to file quarterly returns but to deposit GST on a monthly basis. With GST-slab of 12 and 18 percent abolished, Input-Tax-Credit (ITC) may only be for trading commodities abolishing it for manufacturing sector where maximum tax-theft through ITC is possible. Such a simplified GST system will not affect commoners presently also getting commodities in GST slabs like 0, 3 and 5 percent with revenue earning through GST increasing because of tax-evasion by manufactures through ITC.
Since NBFCs and private banks lure people to take unsecured loans followed by inhuman language and misuse of section 138 of the Negotiable Instrument Act for recoveries, financing to NBFCs by public-sector banks should be stopped. Use of section 138 of the Negotiable Instrument Act for unsecured loans may not be permitted under law.