Just completion of one year of GST it cannot taken as its success. The objects of the GST of creating one national markets, one price of all the commodities throughout the country have not been achieved in its first year. The prices have not come down to attained uniformity. The GST on the services before the GST was 15 per cent now under the GST it has gone upto 18 per cent.
The service taxes are 60 per cent of the economy. All the services are costing more. A common person only understands that cost of taking food in hotels and mobile phones have become costly.
The one of basic point that negates the GST is that it could bring petrol and diesel under its orbit and there is no hope for it in future also. The Deputy Chief Minister and Finance Minister of Bihar Mr.Sushil Modi on the 1st anniversary of the GST repeated and asserted that the petrol diesel would not be brought under the GST and remain as state subject to keep it with VAT on it.
With different rates of VAT on petrol diesel there can never be our transport cost of the goods carried by the truck transport would be same. In the prices of commodities the transport cost is the major factor.
The GST cannot create one market and price national economy and its basic objects are not achieved. The states have upper hand on it revenue earnings over the national view of the GST.
The Central Government on this occasion is just hinting that it may reduce the goods and services tax rates in the coming months as collection under the GST are expected to cross over the Budget estimate by Rupees one lakh crore.
In that condition the Government will want to pass the budget benefits to consumers. The Government is also hoping higher revenue by the tax collections will reduce fiscal deficit and more investments in trade and industry.
All such assurances are not commitment and economy and the common person want to know what is being done in the coming year. The Indian economy is constantly facing the inflation and capital crunch due to high banking rates solely being assessed on the point of inflation and high prices.
The GST must ensure that inflation, the price rise and the fiscal deficit are the main concern of the national economy. To build up a strong national economy the objective of the GST must be achieved and states should step aside and discard its regional approach in the revenue earning from petroleum products.