Drawbacks of GST

There has been a lot of discussion on new GST rates and new system adopted but it has been duly noted that though new tax system and new GST rates are being appreciated there are  couple of drawbacks of it which should be emphasized while learning about GST.

Central interference in tax collection process: Central and state both governments will be equally contributing to the collection process of tax. As per the statement of Finance minister they will be applying horizontal or vertical basis of it.

Higher tax slabs: There are mainly four tax slabs; 5, 12, 18, and 28% . However, while filing the return, tax free products and services will have different slabs. Whereas, for petrol, alcohol etc commodities are out of GST. They will be having different tax rates. Gold also will be having simultaneously different rates to be applied and inter state goods and service tax will be also declared with a different rate.

Different rates for same commodity in country: Alcoholic and petroleum products are under the right of state government and that is why rates of the same commodities may vary from state to state.

Application of GST slab rates will have a considerable impact on our tax system in spite of certain drawbacks of it .

 

 

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