GST Conundrum : A Compromise Formula

Last evening , TV channels were reporting that BJP and Congress are quite close to reaching a compromise on GST bill , expected to be tabled in Rajya Sabha next week

I believe , it is possible to break the deadlock , by exploring introduction of some variation of suggestions made by me in my following blogs ( emailed to Ministers / MPs / Political Leaders ) :

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Jan Dhan Sarjan Yojana ( 31 Aug 2015 )

By launching ,  Jan Dhan Sarjan Yojana 

 ( People's Wealth Creation Scheme )

As follows :

>   If GST is going to be ( say ) 20 % , Government will transfer from this ,

     2 % ( ie 10 % of that 20 % ) , to the PPF account of the Consumer /

     Buyer , who pays for the Goods / Services purchased , using a RuPay

     Card or a " Mobile Wallet " app

     This will motivate millions of self - employed to open  PPF  accounts !

>   Since interest from a PPF account is tax-free , every citizen would , now

     want to make all payments thru RuPay card or a Mobile Wallet App

>   RuPay cards are already tied up with accounts opened under Jan Dhan

     Yojana

>   Mobile Wallets Apps will also get tied-up with thousands of branches of

     Payment Banks , which will open in next 18 months

     Just imagine the number of new accounts that will get opened in the

     1,55,000 + post offices of India Post  !

>   In this way , Social Security will become " Self Financing " !

>   Currently , in India , some 97 % of all payments are " Cash Payments ".

     With introduction of this proposal , these will drastically decline

>   Any payment made , using RuPay card or a Mobile Wallet App , will make

     available to the Income Tax Department , full digitized record of each

     such transaction , including :

     *  Who  made the payment

     *  To whom was that payment made

     *  When was that payment made

     *  For what purchase , was that payment made

     *  What was the amount paid

>   One , very desirable consequence of  Jan Dhan Sarjan Yojana

     will be that our " Domestic Savings Rate " will climb back to 30 % !

      In turn , this will help us wither global economic crisis , much better  !

I have a feeling that my proposal will be welcomed by all sections of our Society and find overwhelming support for the passing of the GST bill by all political parties

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Making  a  Mountain  out  of  a  Mole hill ( 19 Nov 2015 )

*   2 % ( out of 27 % ) of GST , to be directly deposited in the PPF a/c of the buyer

    ( This will ensure that all citizens have PPF account )

 *   This 2 % to be used to pay the premium for that person's health insurance

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Structural Reforms ( 30 Jan 2016 )

*  Transferring 10% of GST ( ie 1.8 % out of 18 % ) to PPF accounts of the

    buyers ( increase Domestic Savings )

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People of India are watching - and hoping !

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29  July  2016

www.hemenparekh.in / blogs