Increasing the tax base is fine, but that should not be at the cost of destroying business and job creation.
Micro,small and Medium businesses are the worst affected
Can you run your business without advertisements?!! No, right? Well that’s the problem because now you will have to register for GST and might have to pay tax on your revenue even though your turnover is below Rs 18/20 Lakh. Once you register, as per the GST rules, you will have to follow the compliance procedure by filing returns every month and bear with the compliance cost. That’s great news for any Charted Accountant as for registration he is going to charge you as well as for every monthly filing. Charted Accountants have reportedly increased their charges by 30% ever since the new tax structure was imposed.
GST was supposed to make doing business easier, but the form in which it has been brought out by this government has done the exact opposite. There are myriad of technical difficulties that GST has introduced into taxation. First is the immense confusion to due to the lack of clarity on GST procedures. Even the educated lot find it difficult to comprehend the process. Take for example a small business owner who just started his firm (even a sole proprietor firm), as per one GST rule, he need not register for GST if his turnover is below Rs 18 Lakh. But now, if the firm starts online advertising, say he is putting his product up for sale in Flipkart or Amazon then he might have to register for GST and pay taxes on his income that way.
Even non-business people are facing the unjustified trouble due to GST. As per the present GST rules, even bloggers are considered as E-commerce players and are hence supposed to register for GST. You ask, even a blogger without any revenue from his blog?!! The answer is Yes! Which is absurd for sure. Even if you just want to boost your blog’s Facebook page post, then you will have to provide a GST number by registering for GST. The government and the authorities say that slowly these technicalities will be sorted out. But how many years is that going to take? How long do these people have to face this harassment due to this insensible and absurd tax policy brought out by this government?
Already many small businesses have lost revenue and their business have shrunk because of GST. Many have just stopped their business as they started losing money. Increasing the tax base is fine, but that should not be at the cost of destroying business and job creation. The finance minister and the government still maintain that everything is fine and continue to create problems particularly for the micro, small and medium enterprises (MSMEs) as well as for non-business people. If this continues, then this government will not be involved with governance by the end of 2019.