Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Wednesday, 27 July 2016

GST : Light at the End of the Tunnel ?



Hindustan Times ( July 28 , 2016 ) reports :

On Wednesday , government agreed to drop the contentious 1 % manufacturing tax and fully compensate states for five years for potential revenue losses after GST system kicks in

Even at this stage , there can be " Many a slips between the Cup and the Lips "  !

But then , " Where there is a Will , there is a Way " , too !

Let us hope that when the bill comes up for discussion / voting in Rajya Sabha next week , political parties will find a compromise solution , based on my following suggestion ( sent to all Ministers / MPs as email , 8 months back ) :

--------------------------------------------------------------------------------------------------------------------------------

 Saturday, 28 November 2015


 

GST / GIVE AND TAKE



Dear Shri Modiji / Shrimati Soniaji :


It was statesperson like for you, to reach out to each other last evening , in order to arrive at an agreement on GST

All negotiations have two , initially opposing , parties

No agreement can be arrived at , on the " Terms " of only one of the parties

A customer sold against his will , ceases to be a customer  !

Agreements imposed through numerical strength of membership , are bound to get sabotaged

To arrive at a " Lasting Solution " , there must be give and take


Here is my suggestion :


NDA  GIVE  / OPPOSITION  TAKE  :


*    Accept a cap of 18 % for GST in the Constitutional Amendment Bill


OPPOSITION   GIVE /  NDA   TAKE  :


*    A provision in Bill to enable the Government of the day , to raise the GST % in
     subsequent years , through an enabling provision
     
     This provision ( not mandatory ) , will allow the Government to raise the GST %
    through the Annual Central Budget each year

      ( anyway , Union Budget has to be passed in Lok Sabha , each year )



*   The amount by which GST " may " get raised , to be calculated as follows :

     #    Starting GST %   =    18 %

    #     Assume that , in 2016-17 , CPI rises by 10 %

    #     Take  5 %  of that 10 % rise in CPI .   That works out to 0.5 %

    #     So , in 2017-18 , GST may be raised by 0.5 % , to become 18.5 %

    #     This is the UPPER LIMIT . Government may choose to revise GST to any
           figure less than 18.5 %


This is a perfect  FACE SAVING  FORMULA / a WIN-WIN situation for both  !

This is not a matter of , " WHO is right ? "

This is a question of ,   " WHAT is right ? "


Carpe  Diem !  Cease this moment to strike a deal by today evening  !


Good Luck  !
------------------------------------------------------------------------------------------------------------------------------
28  July  2016
www.hemenparekh.in / blogs


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