1030 (Part 1/of 5 parts) GST (Goods & Services Tax) implemented in India, does not appear to have been adequately designed

Though I have a Degree in Commerce, and a few Diplomas in Banking and Finance, and in spite of spending about 30 years in the field of Finance, Commercial & Institutional Banking, International Banking, and Rural Banking, ever since the introduction of GST in India from July 2017, I could resist an inner itch within me to write some perceptions which I felt about the likely benefits, drawbaacks, impact, of GST, I hesitated to do so, only because, I considered myself as too small-a-fry to analyse or comment about Great Acts like GST. But now, the trigger has come, in the form of DeccanChronicle.Com, first page headline: "Traders hit upon '0GST' scam". For the Readers who wish to study this Report, here is the link: Click here to go to http://www.deccanchronicle.com/business/economy/041217/traders-hit-upon-0-gst-scam-in-hyderabad-markets.html

Before we go deeper, we shall have some quotes:-

Views in the quotes	ybrao-a-donkey's views which are not intended to be imposed on others
"...The decision to implement the reform was not of Prime Minister Modi alone." He said there were nearly 30 parties that were consulted and involved with the new tax, of whom he singled out one. "The Congress is an equal partner in GST decisions. They should not spread lies on GST	Normally, for all successes, politicians, particularly Ruling Party politicians, try to take credit for themselves, leaving nothing to Opposition. When there is some blame to be borne, they may try to apportion the blame, to Opposition Parties also.
"A handful of pessimists" are playing fast and loose with facts to misrepresent a blip in the economy.	Every critic of Hon. Narendra Modi and Arun Jaitley, need not be a pessimist. True that, short term teething troubles need not be taken as some monumental blunder or as total failure. At the same time, we should not forget that it will be easy to kick down a boulder from a hill-top, and that it will be extremely difficult to lift it back to its original position, or to a still higher position. When compared to 'demonetisation', GST seems to have been more carefully planned, and implemented after a consensus. There is also a sort of Review Mechanism, through GST Council, to solve short term problems, and stabilise the Reform. So far, so good.

Some questions	ybrao-a-donkey's views which are not intended to be imposed on others
Would Manmohan Singh and Chidambaram Batch have implemented the GST Reforms better?	Ans: I do not think so. Even Manmohan Singh and Chidambaram would have botched and goofed up the GST Reforms either with similar or worse shortcomings. Both BJP and Congress, are basically bourgeoisie parties. All their Actual Aims and Actions revolve around catering to the needs of their benefactors, i.e. the Corporate Donors. Proof: Defective design of Adhar Card System, making false promises to Supreme Court, and imposing the Adhar Cards on 1250 million Indians, surreptitiously.
Question: Do you think that Left Parties like CPI, CPM would have implemented the GST better?	Ans: The existing Left Parties in India, especially, the CPI and CPIM are only Centrist Parties, with the same bourgeoisie strengths and pitfalls of the Other Parties in India. In a Truly Totally Socialist Set up, all the wealth and income will be in the hands of the Government. Hence, there will be no need of imposing either Direct or Indirect Taxes on Citizens. Our Communist Parties are not interested in spreading the messages of True Total Socialism. Like Congress or BJP, they too do not have Inner Party Democracy. Hence, we should not expect much from them.
Ques: Is one country, one tax System, not practicable?	Ans: If properly designed, and implemented, One country, One Tax System can succeed. It is 'ideal' and 'desirable'. But it needs, lot of home work and sincerity. Such Decisions and Systems should not be propelled by political opportunism. Right now, in 2017, what we see is: The States have enormous duties and responsibilities to fulfil to the people. GST has taken away the Rights of States to tax and collect locally. Of course, there is a promise to compensate for loss of income 5 years. But after that, what? Today, States have become beggars at the gates of Delhi. This goes against Federalism. Of course, BJP ruled States may not mind it.

We shall, now, review the situation in the light of what Deccan Chronicle said in the above linked News

News from Deccan Chronicle's Grass Root Field Report	ybrao-a-donkey's views which are not intended to be imposed on others
Hyderabad: Post-GST, “zero business”, the practice of conducting sales without issuing bills to customers, has gained ground in the city's markets. In raids recently conducted by officers of the commercial taxes, civil supplies and legal metrology departments, cases were booked against 300 traders indulging in this malpractice, and Rs 5.14 lakh was extracted from them in the form of penalties.	Thanks to Deccan Chronicle, for this important News Report. If Hyderabad Traders can do it, will the traders in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, and above all Ahmedabad lag behind? They might have already perfected better methods!
The raids revealed that traders were charging customers the GST amount, but not issuing bills, thus denying the Centre and the state the tax due to them.	Raids used to be done by Sales Tax Departments of State Governments, during when the Sale Tax, and VAT were in vogue. In the past, it bred corruption. Now, the Corruption will continue.
Large-scale violations were uncovered in the markets in Begum Bazaar, Koti, Mehdipatnam, Siddi-amber Bazaar, Ranigunj, Nampally, Malakpet and Dilsukhnagar.	Where is the Fool-proof system designed by Central Government to make sure that every transaction is accounted for, irrespective of whether Bills are issued or not? There should be no link between bills for goods sold, and GST paid. The link should be between Bills for Goods received from Suppliers, and the GST Paid, after leaving unsold goods. Even on the unsold goods, the GST for the 'Supply Prices' might have already been paid by the Suppliers.
Traders in Charminar, Goshamahal, Uppal, Dilsukhnagar and Borabanda were found procuring commodities without bills. They procured palm oil and gutka from the Kakinada and Krishnapatnam ports in Andhra Pradesh and electronic, electrical, steel and construction material from the Chennai port.	GST cannot check this because, Government of India does not seem to have any mechanism for it.
Traders were also found procuring gutka, on which 28 per cent GST is applicable, from other states, without bills and invoices, and selling it to customers with the GST charges added, but without formal bills.	I have read in Newspapers that Inter State Check Posts, and Inter District Check Posts will be removed.
The zero business practice is also prevalent in the textile sector in the state. Cloth merchants were found procuring fabrics from Gujarat and charging the mandatory GST while selling them, without issuing bills.	Recovering GST from customers, and not remitting to Govt. can be treated as Day Light Robbery, and punishment for it should be incarceration. Here both the Customers and the Government are being robbed. One solution for preventing this type of robberies: In the bygone era we used to have pre-paid Excise labels, affixed to the lids of match boxes, individually, to prove that Excise was paid. This System of prepaid labels, for sealing 'packages' can be reintroduced, at least on an experimental basis. If, owing to cut-throat competition, if GST is not recovered from customers, and remitted to Govt., though Government suffers revenue loss, at least Customers benefit. Though this is also an omission, some lenience can probably be shown, when compared to the crime of "Recovering and not Remitting".

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