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, 22 September 2018

JUST A FEW MONTHS FOR THIS REFORM !


Radical  Invoicing  ?  No , just Logical  !

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

Business Line ( 19 Sept ) carries following news :



Highlights :

At the heart of the first proposal is the recognition that the invoice – which validates every sale of goods or of a service – is the main document in any transaction and can capture the value chain and the tax.


The invoice has all the details the taxman needs:

·      the names of the seller and the buyer,
·      the supply date,
·      a description of the goods or service,
·      the value, and
·      the tax.


The Committee has proposed that each invoice bear a ‘distinct invoice number’ (DIN), which will be obtained by the seller, if necessary in bulk, from the GST server, and used serially.


The buyer of the goods or the service must cite the DIN when he, after value addition, raises his own invoice (with its own DIN), to claim a tax credit.


Since both the invoices are uploaded in the GST server, the two can be matched.


For B2C transactions, the proposal is for every citizen to obtain a ‘consumer number’.

After a transaction (say, eating at a restaurant), the consumer can log on to the GST portal and match the DIN (cited in the restaurant bill) with his/her consumer number.

That validates the fact that the consumer paid GST on the transaction; if no GST is remitted against the DIN, the seller (restaurant owner) will be punishable.

In turn, the consumer can be rewarded for his troubles, perhaps in the form of tax concessions.



While welcoming this ( belated ) realization of the need for simplifying the GST process , I urge the “ Committee  on Invoice “ to consider my following suggestions :

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  !

When BHIM is here, can ARJUN be far away ?  [  30  Dec   2016  ]



Dear Shri Amitabh :

Like you ( and of course , Shri Modiji ) , I have a great faith in the ability of Indian software engineers ( local or NRI ) to come up with revolutionary solutions / innovations !

Just ask Sundar Pichai , Sam Pitroda , Satya Nadela , Sachin Katti , Pranav Mistry , Sanjay Sarma , Nandan Nilekani etc , if they will help implement the following :

*  Buyer  buys something worth Rs 100 from a shopkeeper

*  Buyer and the Seller , look into their own mobile-cameras ( of  smart phones
   loaded with M-Rup ) for biometric Aadhar identification / linked to Jan Dhan a/c 

*  Seller speaks in his mobile : " Muze Sau Rupiah dedo "

*  Buyer speaks in his mobile : " Inko Sau Rupiah dedo "

*  Message flashes in the mobile screen of Seller : " Tumhare account-me Sau Rupiah
   Jamah ho gaya / GST bhi kaat ke Sarkar-ko bhej diya "

*  Message flashes in the mobile screen of Buyer : " Tumhare account-se , Sau Rupiah inko
   Bhej Diya . Abhi balance me teen sau sath rupiah bacha hai "


I request all concerned , not to insult our engineers / scientists / geeks , by doubting if such SIMPLIFICATION ( based on day to day spoken language ) is possible

Doubting Thomas may want to look up ... PILOT   

This is the only way rural India can bypass the Jurassic Age of Plastic Cards to usher into a CASH-LESS society !

22  Sept  2018



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