GST-Sab Ka Saath Sab Ka Vikas
By R. C. Joshi
Goods and Services tax was introduced in India in the mid night hour of 30th June 2017. The government tried to make it an historic event. It replaced seventeen different types of indirect taxes by the help of one hundred twenty second amendment in the constitution of India. It took about sixteen years to pass the GST bill in the parliament.
The main aim of taxation is to collect revenue for the government in order to meet the expanses in providing the services to the nation as it is said,”DESH SEVARTH KAR SANCHAYAM.”However there may be other aims such as to reduce inequality among the people. The people should pay tax for using the services provided by the government such as safety, security, law and order, education, health and transport and communication etc.
What should be the rate of tax? It is an important aspect. The tax rates in a democratic country should be minimum as per the sharing population to the gross tax collection rich people, middle class people, poor and very poor people. Accordingly government put the slabs of taxes as 5% .12%, 18% and 28%.There are near about one hundred forty countries having goods and services tax, the tax rate is highest in India followed by Argentina up to 27%. Japan introduced goods and services tax in 1989 and tax rate was fixed 3%; in 1997 it was increased to5% and again in 2012 it increased to12% with a provision not to increase till 2019. France was the first country to introduced Goods and services tax in 1954 in order to reduce tax evasion. United States there is no Single indirect tax like G S T. Communist China uses Value Added Tax.
Tax evasion is the main reason for implementing goods and services tax. People do not like to pay tax: when they find that a large amount of their hard earned income is going to the government, and in return they are not getting necessary facilities from the government. The evasion of taxes is a big problem in both the developed and developing countries. The socialist countries have fewer problems than the capitalistic countries. United States is having highest rate of tax evasion. Low rate of taxes, simple method of payment and filing the return can reduce the rate of tax evasion. The popular government which is capable to convince the people about the urgency of high rate of tax ,can easily get the support of the people.
The success of government is in using the collected amount for the welfare of the masses. If the people find that the amount collected is misused for the benefit of the rulers only the history taught the lesson to them. The public is the real judge of the government. The propaganda for self commendation cannot help the development of the country. For the growth and development of the country everyone should be contributing fairly well as per his/her capacity and capability in the welfare state.