Telugu Politics

GST – What government assumed turned wrong?

GST is another experiment from government after Demonetization. This taxation is assumed to help the nation get more money in the form of taxes. It is a fact that several small scale industries were not paying taxes due to the loopholes and cash based transactions. Now as the government wants everything to be digital with proofs, small scale businesses have no option to escape but to pay taxes on time.

This is expected to fill the government’s pocket which will be used to develop the nation further. Interestingly, the small scale industries were not able to hike the sale price in spite of increasing their investment due to taxes. This is crunching them in between and they were giving up, dismantling the industry. This is what happened in Gujarat and the cotton handloom industry almost collapsed. Government’s assumption that the raise in taxes will raise the salaries of employees and the output sale value, went wrong as the market is not ready to take commodities at higher prices and were opting to go for alternative goods.