Rate Impact on Automobiles (in %)
In spite of the price rice, the industry expects a healthy growth in car sales this
fiscal, especially in the electric vehicle segment.
50
health insurance policies have
become slightly more expensive,”
said Sanjay Tiwari, Executive Vice
President, Product Management
and Customer service, Exide Life
Insurance.
GST has not only impacted the
personal finance and budget of
middle class homes, traders and
businesses are equally struggling
to make sense of the ever-changing
format of both GST forms and
norms. In August last year, when
GST filing was first introduced, the
GST network crashed a multiple
times. “In the beginning, we had
certain teething troubles, partly due
to software which required a bit of
tweaking. But even people needed
awareness on correct filing,” says Ajay
Bhushan Pandey, GSTN Chairperson.
In September 2017, Bihar Deputy
Chief Minister Sushil Kumar Modi,
who is the Group of Ministers’
convener to look into the glitches in
GSTN acknowledged that “technical
glitches, procedural problems
and absence of some forms on the
network portal causing delays in
refund payments and filing of returns
by traders and dealers.”
It is true that when a large system
has to be changed, teething troubles
40
30
20
10
0
Small Cars
( > 1200 CC)
Pre GST
Mid Size Cars
(1200 CC–1500 CC)
Post GST
are inevitable. However, the scale of
confusions and the resultant trouble
for individuals and businesses was
unacceptable. “The design of GST
in India is faulty, as it has shown
in the last one year. It could not
provide ease of doing business and
has failed to control black economy.
Worst it has made it difficult for an
individual to manage their personal
finance,” says Kumar.
He also points out that the
numerous tax exemptions will
impact the individual consumer.
The five critical items that are
currently out of the GST ambit are
There has been progressive improvement in compliance in the past 12 months.
The table below shows the percentage of returns filed as on due date and the
cumulative level of compliance.
Required
to file
July '17 66,47,581
Till due date
Return
% Cumulative Return
Return
%
38,34,877 57.69 63,88,549
96.10
Aug '17 73,70,102 27,25,183 36.98 68,51,732 92.97
Sep '17 78,23,806 39,34,256 50.29 71,09,143 90.87
Oct '17 77,21,075 43,68,711 56.58 67,77,440 87.78
Nov '17 79,57,204 49,13,065 61.74 67,65,603 85.02
Dec '17 81,22,425 54,26,278 66.81 67,47,887 83.08
Jan '18 83,22,611 53,94,018 64.81 66,94,387 80.44
Feb '18 85,27,127 54,51,004 63.93 65,62,362 76.96
Mar '18 87,15,163 54,58,728 62.63 56,30,683 64.61
Source: Press Information Bureau
SUVs / Hybrid Cars
( < 1500 CC)
Source: Khaitan & Co.
GST Revenue Collections in FY 2017-18
Return
Period
Luxury Cars
( < 1500 CC)
crude oil, natural gas, aviation fuel,
diesel and petrol. State governments,
of course, continue to play with the fuel
prices, which impact the daily budget
of an individual and family. Oil and gas
are a highly political and emotive issue.
Telengana and Andhra Pradesh have
openly opposed bringing these items
under GST, while others have opposed
it in the GST Council meetings. States
argue that these items provides excise
revenues critical for their budget.
Concerns over tardy
implementation of an ambitious tax
system has drawn the attention of
several international organisations.
According to a United Nations report,
India’s GDP growth was pushed
downward to 6.6 per cent in 2017
against 7.1 per cent in 2016 due to
GST, along with others like corporate
and bank balance sheet problems. The
report stated that India is expected to
recover gradually and grow at 7.2 per
cent in 2018.
Success of GST in India depends
not only on the legal and tax reforms
but also the robust digital network, that
customers and businesses can depend
and have faith on. It is important that
people of India get used to GST, but, its
success depends on easy adoption.
[email protected]
With inputs from Nirmala
Konjengbam and Suyash Desai
www.outlookmoney.com July 2018 Outlook Money
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