Dear Natarajan,
I am glad that you find time to read my blogs
On the subject of GST , i posted the following yesterday
Warm Regards,
Hemen Parekh
(M)=91 – 98,67,55,08,08
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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 ) :
--------------------------------------------------------------------------------------------------------------------------------
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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------------------------------------------
Structural Reforms ( 30 Jan 2016
)
*
Transferring 10% of GST ( ie 1.8 % out of 18 % ) to PPF accounts
of the buyers ( increase Domestic Savings )
------------------------------------------------------------------------------------------------------------------------------
People
of India are watching - and hoping !
------------------------------------------------------------------------------------------------------------------------------
29
July 2016
From: Nattu [mailto:iamnattu@gmail.com]
Sent: Thursday, July 28, 2016 1:57 PM
To: Hemen Parekh
Subject: Re: GST : Light at the End of the Tunnel ?
Thx Hemenji
I Hv been reading your emails. The BSE/NSE will be ready to react.
Regards
Natarajan
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
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 !
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28
July 2016
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With regards,
hemen parekh
Marol , Mumbai , India
( M ) +91 - 98,67,55,08,08
