TODAY -

Goods and Service Tax (GST) and its role in Manipur

Dr Mayengbam Lalit Singh *

Manipur Legislative Assembly Building as seen on March 19 2017
Manipur Legislative Assembly Building as seen on March 19 2017 :: Pix - Shankar Khangembam



The intense wave of GST originated from the centre (Delhi) is spreading across all the states just like Monsoon. But in the minds of millions people, the big questions flourished are (a) What GST is; (b) How it is different from presently existing tax systems; and (c) How it benefits the country as well as states.

By virtue GST is a uniform tax structure which is to be framed by centre and state. It is also destination based tax. Both centre (CGST) and states (SGST) can levy it simultaneously across the value chain. The distinguishing feature of GST from the previous tax is that it avoids of cascading effect.

Elaborating with small example, a firm manufacturing steel plates buys from steel producers at $100. The plate manufacturer pays Rs 10 (10% of price of steel) as tax and hence the total value of steel is Rs 110. Assuming that plate manufacturer adds Rs 100 in converting steel into plate. Final consumer has to pay Rs 221 (here Rs 21 as tax for Rs 210).

In this system final consumer has maximum tax burden. Under GST regime, there will not be tax in different stages of production. Producers at different stages of production have to be rebated by government when they submit their respective tax.

The expected benefits are: it levies all the economic activities (stages of production) at the same rate; it widens tax slabs; tax becomes narrower. Moreover under GST regime, there will be three slabs of tax structure. The first slab is GST on basic goods (such as medicine, basic food items) which are to be lowered at minimum rate.

GST on standard goods such as clothing, large parts of manufacturing goods, etc are to be fixed at medium rate. GST on luxurious goods (ornaments, costly vehicle, tobacco, etc) have to be taxed at higher rates.

One of the most important benefits is reduction of corruption under GST. Since it is destination based tax, it removes various taxes levied when goods cross state borders on their way to final destination and hence less corruption.

The more interesting outcome of implementation of GST is that it may lead to faster economic growth in India. Removal of multiple check posts boosts the investment in manufacturing sector since there will not be delays in delivering inputs and outputs of this sector across all states.

In a state like Manipur which situates at extreme corner of India, GST is boon to people in the state since GST will evade the multiple taxes on the goods crossing multiple state borders. The state imports a wide range of goods from various and farthest parts of India.

For an example, when Manipur imports steel items from Tamil Nadu, the carrier has to cross borders of six states. In the previous tax regime, the carrier has to pay tax whenever it crosses borders of those states. Hence, the goods arrives at Manipur, there will be value addition of multiple tax which leads to higher price of the goods and huge dead weight loss to consumers’ surplus. However, under GST regime, there will be only one time payment and there will not be further delay in delivering goods also.

GST levies minimum tax on basic commodities due to basic nature of these commodities in day to day life. However, categorisation of such commodities is discretionary to the respective governments of states. More number of goods under this basket yields in welfare of consumers and enables reduction of wage level. For instance, imported dry fish (raw material of fermented fish “Ngari”) has to be levied at minimum tax on its import so that ngari can be considered as basic commodity.

One of the most promising boons of GST is reduction of tax and procedures on the shipments of goods especially raw materials. Manipur is popular for handloom and handicraft items. However, the present nature of customs tax, cost of import and tax on raw materials as well as machines are not encouraging to this sector. Upcoming GST will evade such asymmetries and is expected to boost investment on manufacturing sectors. Another important promise of GST is inclusion of various goods and services under this umbrella. The biggest loophole in Indian economy is exclusion of various goods and services which leads to loss in the collection of revenue. Presently, various traditionally based manufacturing goods are hardly listed by government of Manipur.

State GST has to cover such goods under it so that these goods can be patented and government can adopt policies to boost production. Moreover, government still fails to cover various services sector under organised sector.

For example, shopkeepers, saloons, goldsmith, blacksmith, tailors, carpenters, etc. are out of organised sector which results in reduction of huge revenue to government.

The proposed SGST should include these services which lead to a proper policy for this sector. It is duty of both centre and state governments how to implement GST and what constituents are so that GST will yield in better economic growth, welfare and equity across states, sectors by removing lopsided development under erstwhile VAT, Excise and Customs tax.


* Dr Mayengbam Lalit Singh wrote this article for The Sangai Express
This article was posted on June 11, 2017.


* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • Ningol Chakkouba @Sikkim :: Gallery
  • Songoulun, Lamgousang, Yinmajo: eMing
  • Chakkouba Shopping #2 :: Gallery
  • Hill Tribe and Valley tribe
  • Demand of ST & ensuing recriminations
  • NGOs & rural development in Manipur
  • Ningol Chakkouba at Tulihal COB
  • Condemns murder of scribe in UP
  • Indo-Naga Talks 2017 :: News Timeline
  • Zeliangrong's convention postponed
  • Mary Kom in Assam ring
  • Sports : Year long activity in Manipur
  • Ningol ChakKouba @MBC #1 :: Gallery
  • Houchongba Opening Ceremony :: Gallery
  • Thank God I didn't choose you :: Poem
  • Waking up at night
  • Remembering Jesus: Christian values..
  • Dharna on recognition of NPF Chief Whip
  • Recap of Current Nagaland Political Crisis
  • Legal opinion on NPF whip
  • Ningol Chakkouba celebrated in Manipur
  • Congress 'defectors' left in the lurch
  • 6 Naga groups form body to join peace
  • Nagas still have many years to be mature
  • Prelude to what we need to know 2!!
  • Ningol to her mapam lamdam :: Gallery
  • Chakkouba Fish Mela #1 :: Gallery
  • Ningol Chakkouba Tribute : Flash
  • 'Merger Agreement' and Manipur Question
  • Should fake news be merely brushed away
  • Frozen street laws & nasty people..
  • Resolution of CEC, NPF : Oct 20
  • Concern over meeting btn China, NE ultra
  • Materialistic interpretation of Chakkouba
  • Of power and the powerful
  • Manipuri Calendar for 2018 : Download it
  • Chakkouba Shopping #1 :: Gallery
  • Ningol Chakouba : A message
  • 2 novel TB drugs move into human studies
  • Japan & its myriad culture from my eye
  • Cry of a Dying River- 5 :: Poem
  • Thanksgiving for first Naga woman pilot
  • Manipuri film nominated for APSA, Brisbane
  • NPF whip - the plain truth
  • Subterfuge & money cannot buy the law
  • Pearls of wisdom from Dalai Lama
  • Resisting Partisanship
  • Mera Men Tongba :: Gallery
  • Liberation War And Merger : Part 1
  • Diwaligi Ahingdo :: Wari
  • Exploding cyber crime in India
  • Manipur National Day- 18 October 1948
  • Greetings on Diwali & Ningol Chakkouba
  • TSA DJ Theme Song , DJ icon audition
  • Meghalaya Venue & Daywise Lineup
  • Tasked to monitor talk: Koijam-Himalay
  • Looking beyond the tough words
  • Rejoinder to deserted NPF Group Longleng
  • CM honors U-17 WC Footballers :: Gallery
  • I don't want to die before I am dead : Poem
  • Is the 'Fear for Qur'an' Being Traded ?
  • MUTA Series 4 : Who supports Whom?
  • What ails Manipur ?
  • Old Age pension Scheme details uploaded
  • Increased privilege for responsibility
  • Culturals @ Mera Houchongba #1 :: Gallery
  • Seven Years Devastation: Book Review
  • Matos bhai & our FIFA boys "bravo"
  • Trafficking vis-a-vis Domestic Work
  • An open letter to Chief Minister
  • DG Assam Rifles calls on Chief Minister
  • Nagaland press firm against intimidation
  • No Aadhaar, No Mid-day Meal stand
  • The good, the bad and the ugly
  • Footballer: U-17 World Cup :: Gallery
  • Kwak Tanba #3 :: Gallery
  • Night Plaza: Outlook of a developing Manipur
  • Biased national media
  • Agri-volatic: boosting agricultural income
  • Natural skin glow for Diwali
  • Eleven LPG refills in 4 months !
  • 'No change in territorial boundary of States'
  • MaiOn (scenes) #1 :: eRang
  • Tune out within dark
  • Loktak: Storm brain before blasting barrage
  • Gojilove : Now In Manipur
  • Fighting a losing battle
  • A Poem for My Wife :: Poem
  • October 15 retrospection
  • E Sonamani: Jnangarima Manad Alankaran
  • 11th Mega Marathon Manipur #5 :: Gallery
  • Langbal Keithel @ Kangjeibung #4 :: Gallery
  • Geo-politics & Skill Devlp in Act East Policy
  • Wildlife Week: Working together for wildlife
  • Letter to ATSUM (Reply to rebuttal)
  • A rebuttal to "Imprudence of ATSUM"
  • Don't sleep with minor wife ruling: Rapist
  • Awaited expectation
  • Journey of Amur falcon #2
  • Irabot Day - March Past #2 :: Gallery
  • Buddha's Metta & Karuna #2
  • Hei-kak: An aquatic cash crop in Manipur
  • Flood prevention and mitigation
  • Unearthing gems: Northeast Diva 2016-17
  • Nagaland Whip issue hearing in the court
  • Film screenings on NE held in Estonia
  • Of Leikhom Leinang & Uphul Waiphul: NH-2
  • March: Mera Houchongba #2:: Gallery
  • AMAND Pune: Annual Cultural #2:: Gallery
  • Langol Tourist Watch Tower #7 :: 360 ° View
  • .. end AIDS by 2030: Are we on track ?
  • Career in Tourism - Part 2
  • Which one should precede- ILPS or ST ?
  • Comedian Audition during Night Plaza
  • Seizure of Dried Fish Grenet (Tirkiya)
  • LPG diversion: Non-local in subscribers list
  • For a little bit more
  • Pot Lannaba: Houchongba #1 :: Gallery
  • Crowd @ World Tourism Day :: Gallery
  • Moreh PWD complex controlled by militants
  • FIFA U-17 : A milestone for NE football
  • Post submergence impacts of Mapithel dam
  • Cry of a Dying River - 4 :: Poem
  • Program on World Mental Health Day
  • Out but not down :: Needed : A strong Cong
  • Redefining 'Manipuri'
  • Imphal Evenings- Night plaza #2 :: Gallery
  • FIFA U-17 Profile :: Kh Ninthoinganba
  • Keithel Lairembi Ima #3 :: Gallery
  • Observation of World Mental Health Day
  • Ruskin Bonding - VI
  • Life - A Bubble :: Poem
  • Mapung fana chathari
  • Surgical Closure of 'Hole in the Heart'
  • Inferred or in B/W? Integrity Vs integration
  • Imphal is changing but traffic a menace
  • Kwak Tanba #2 :: Gallery
  • FIFA U-17 Profile :: Thounaojam Jeakson
  • Langbal Keithel @ Kangjeibung #3 :: Gallery
  • NE Fashion Week @ Dimapur:: Gallery
  • Journey towards Breaking the Shackles
  • The Man Who Saw Tomorrow :: Poem
  • Free Medical Camp at Lilong
  • From Nobap to World Cup: Magnificent 8
  • Journey of Amur falcon #1
  • FIFA U-17 Profile :: Nongdamba Naorem
  • Lamyanba Irabot- Birth Anniv #2:: Gallery
  • 11th Mega Marathon Manipur #4 :: Gallery
  • FIFA U-17: US won but we were lauded more
  • Imprudence of ATSUM
  • Tonsuring the nature
  • March: Mera Houchongba #1:: Gallery
  • FIFA U-17 Profile :: Dheeraj Moirangthem
  • AMAND Pune: Annual Cultural #1:: Gallery
  • Research Line : Book release Function
  • 100 Yrs Of Tangkhul Naga Football
  • Make RIMS shining
  • Another NE Youth Missing in the Capital
  • AMAND, Pune : 6th AGM / Annual Cultural
  • Sadar Hills District Demand: News Timeline
  • Nungshibi : Social Networking :: Website
  • Seeking 2 years time: Too early to judge
  • Let Holy books be replaced by Constitution
  • FIFA U-17 Profile :: Amarjit Kiyam (Captain)
  • FIFA U-17 Profile :: Thangjam Boris
  • FIFA U-17 Profile :: Wangjam Suresh
  • FIFA U-17 Profile :: Md Shahjahan
  • Loktak Folklore Museum- for fishing
  • Opening: Imphal Evenings :: Gallery
  • Mayanglambam Gourachandra: Awardee
  • Win the hearts if not the FIFA Cup
  • Cry of a Dying River #3 :: Poem
  • For the 8 football players of Manipur..
  • Article 342 makhada furup amana ST ki list
  • Manipur to set up land bank
  • Hosts India set to make FIFA WC debut
  • ATSUM against ST: Let the experts decide
  • A matter of concern for the future
  • Irabot Day - March Past #1 :: Gallery
  • Bor khoiramba @ Hiyangthang #2 :: Gallery
  • Manipur Have done it again
  • Hingchabi Changba: Possessed/ Exorcism
  • Tourism as career option
  • Hydro Electric Power: A must for Manipur #4
  • The Killing Fields :: News Timeline
  • Imphal Evenings- Night plaza #1 :: Gallery
  • Keithel Lairembi Ima #2 :: Gallery
  • Doren: 'Theatre of the Earth' wins in Kerala
  • Solo Album Launch of Awarthanga Chiru
  • How Manipur missed internal autonomy..
  • Whispering of Heart :: Peom
  • Kwak Tanba #1 :: Gallery
  • Nitya Raas, Ras Leela Fest #1 :: Gallery
  • 11th Mega Marathon Manipur #3 :: Gallery
  • Manipur Assembly Elections 2017 #2
  • Manipur State League: Table - 1st Oct
  • Lamyanba Irabot- Birth Anniv #1:: Gallery
  • Vanishing pottery craft & Livelihood: Chairen
  • Irabot Day Celebration at New Delhi
  • Inner Line Permit (ILP) Demand : Timeline
  • World Tourism Day- Inauguration :: Gallery
  • Research Line : Book Preview
  • Irabot Day Celebration (2017)
  • 'Maniwood' vs 'Haolywood' Football :: Gallery
  • Death Anniv- Bhagyachandra #5 :: Gallery
  • Featured Photo for 2017 #4 :: Gallery
  • Nangna Helli Nungshiba #1 :eRang
  • Manipur Sangai Festival 2016 #6 : Ooba
  • Traditional Ritual @Khurkhul #4 :: Gallery
  • Priyogopal : Senior Film Artist :: eRang
  • Hathei Phanit @Sirarakhong :: Gallery
  • Heitha Leithaba @Kekrupat #2:: Gallery
  • Eyek Tamba :: Learn Manipuri script
  • Kang Tournament #2 :: Gallery
  • Old Manipuri Movie #1 :: eRang Classic
  • Landscape of Manipur #7: Wallpaper
  • SPONSORED ADS