Fringe Notes!
अहम् ब्रह्मास्मि

Tale of GST and why it has to be complex


IF GST becomes simple i.e. no multiple rates, no rates within the industry, it will lead to simplification of business. Ease of business will jump, business will boom as the cost of doing business will drop drastically, which will lead to lower costs and higher consumption.

Given India’s massive population and interlinked economy, this will put India on another path of growth as the economy will boom, profits will soar, jobs will get created. But this has a huge downside.

Simplified tax/GST laws will almost eliminate corruption. No longer there will disputes as all will be taxed at uniform rates. Hence no ambiguity, no money laundering and hence no scope for corruption.

If there is no corruption/ bribe to be made, there will no longer be demand for prized postings ( good postings cost massive money) as an industrial town will be same as a rural town from income-generating perspective.

When there will be no demand for prized postings, the favorite business of postings/transfers will grind to halt. Nobody will pay crazy sums to superior powers for a favorite posting.

This, in turn, will choke the earning capability of the chair which used to take these decisions. This lack of money will further choke the money supply to the elections.

Hence to keep wheels of democracy running, one need complicated GST/ tax laws.

Jai ho democracy.