FAQ on GST

1.what is goods and services tax?

The GST  is an unified indirect tax that will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services with minimum exemptions.

2.what is value added tax?

A value added tax (VAT) is a form of consumption tax. It is a tax only on the "value added" to a product, material or service, from an accounting view, by his stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes he had previously paid on the inputs.

The "value added" to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs.

3. how GST is different from VAT as followed by the states?

If the Value Added Tax (VAT) is considered to be a major improvement over the pre-existing Central excise duty at the national level and the sales tax system at the State level, then the Goods and Services Tax (GST) will be a further significant breakthrough – the next logical step - towards a comprehensive indirect tax reform in the country.

4.How is GST going to be implemented in India?

GST is to have two components- central GST and state GST – with separate rates, reflecting revenue considerations and acceptability. They would be administered and collected separately. Cross utilization of input credit is not allowed except for IGST.

5.Why cant we have an unified GST?

need for upholding the powers of Central and State Governments in their taxation matters.(fiscal federalism )

6.What are advantages of implementing GST ?

•  Cascading effect of taxes
•  Improvement in transparency and reduction in tax evasion

7. Why we need GST ?

•  non-inclusion of several Central taxes in the overall framework of CENVAT, such as additional customs duty, surcharges,etc.,
•  Non capture of valu addition chain beyond the production
•  Non inclusion of several state taxes like luxury tax, entertainment tax  etc.
• Cascading effect of CENVAT on the state taxes 
•   Removal of central sales taxes

8.What are the taxes to be subsumed under GST ?

it is recommended that the following Central Taxes should be,to begin with, subsumed under the Goods and Services Tax:

ü  (i) Central Excise Duty

ü  (ii) Additional Excise Duties

ü  (iii) The Excise Duty levied under the Medicinal and

ü  Toiletries Preparation Act

ü  (iv) Service Tax

ü  (v) Additional Customs Duty, commonly known as

ü  Countervailing Duty (CVD)

ü  (vi) Special Additional Duty of Customs - 4% (SAD)

ü  (vii) Surcharges, and

ü  (viii) Cesses.

Following State taxes and levies would be, to begin with,subsumed under GST:

ü  (i) VAT / Sales tax

ü  (ii) Entertainment tax (unless it is levied by the local

ü  bodies).

ü  (iii) Luxury tax

ü  (iv) Taxes on lottery, betting and gambling.

ü  (v) State Cesses and Surcharges in so far as they

ü  relate to supply of goods and services.

ü  (vi) Entry tax not in lieu of Octroi.

Seismic Zoning and Nuke plants

Map below shows the location of operational and under constructional power plants as regrd to the earth quake zoning (seismic zones ).

As seen from above, Jaithapur power palnt falls in zone iv , which had created lot of uproar in the area. Other places are relatively safe if this is accurate enough. India should take detailed study about its site worthiness before venturing into new projects.

New Methodology to Assess Price Index

CSO has released a new CPI index with 2010 as base year. see the report here

The report states that urban spends more on housing (22 % ) , education and transport than their rural counterpart. They also spend more on recreation than rural. Rural people's doesnt cost or costs less .

surprisingly, fuel % is more for rural than the urban , though in actual value urban may spend more.

rural spends more on food, fuel and health.

Interestingly, both use same % for alcoholic beverages.

New series of CPI-- All India weights
Sub group/group	Rural	Urban	Combined    (Rural+Urban)
Cereals and products	19.08	8.73	14.59
Pulses and products	3.25	1.87	2.65
Milk and milk products	8.59	6.61	7.73
Oils and fats	4.67	2.89	3.90
Egg, fish and meat	3.38	2.26	2.89
Vegetables	6.57	3.96	5.44
Fruits	1.90	1.88	1.89
Sugar etc	2.41	1.26	1.91
Condiments and spices	2.13	1.16	1.71
Non- alcoholic beverages	2.04	2.02	2.03
Prepared meals etc	2.57	3.17	2.83
Pan, tobacco  and Intoxicants	2.73	1.35	2.13
Food, beverages and tobacco	59.31	37.15	49.71
Fuel and light	10.42	8.40	9.49
Clothing and bedding	4.60	3.34	4.05
Footwear	0.77	0.57	0.68
Clothing, bedding and footwear	5.36	3.91	4.73
Housing		22.53	9.77
Education	2.71	4.18	3.35
Medical care	6.72	4.34	5.69
Recreation and amusement	1.00	1.99	1.43
Transport and communication	5.83	9.84	7.57
Personal care and  effects	3.05	2.74	2.92
Household requisites	4.48	3.92	4.30
Others	1.12	0.99	1.06
Miscellaneous	24.91	28.00	26.31
All Groups	100.00	100.00	100.00

Just have a look @ this

another SI unit that comes in newspaper after fukshima reactor disaster - sievert

Amendement in constitutution for GST on roll here

coverup of 2010-2011 protest in wiki

Another perspective to fix balance between free power and power crisis

Black money - 5 pronged strategy

Mr. Mukherjee noted that to tackle the menace of illicit funds, the government had adopted a five-pronged strategy:

• joining the global crusade against black money; 
• creating an appropriate legislative framework; 
• setting up institutions for dealing with illicit funds; 
• developing systems for implementation; and
• imparting skills to the manpower for effective action.