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

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Saturday, 30 July 2016

RE: GST : Light at the End of the Tunnel ?


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

On 28 Jul 2016 5:01 pm, "Hemen Parekh" <hcp@recruitguru.com> wrote:

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

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With regards,

hemen  parekh


Marol , Mumbai , India


( M ) +91 - 98,67,55,08,08



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