Page 52 - GSTL_11th June 2020_Vol 37_Part 2

J60 GST LAW TIMES [ Vol. 37
tion of goods and services. This could be by way of reduced GST rate on online
supplies, deferral of equalisation levy, which also furthers the twin goals of a
digital economy and rationalising compliances, besides unburdening the small
and medium industries. Infrastructure development in these sectors should also
be pushed by further tax rebate, which could be linked to other externalities,
such as infrastructure creation, incremental investment and job creation.
The GST Council must also consider an across the board temporary re-
bate on white goods and those which fall within the 28 per cent slab, such as con-
struction-related products made of stones, cement, paints, varnishes, marbles,
granites, furniture-related goods and automobiles. The same holds good for
high-tax services, such as construction, hotels and entertainment. A two-year
window for reduced tax incidence or deferral on such goods and services is like-
ly to increase their demand, which in turn will stir the industry. Policy-makers
must stay alert to rise in unemployment due to COVID-19 and address the woes
of intrinsically labour-intensive industries or those which depend upon migrant
labourers to calibrate the schemes with employment-linked subsidies and ex-
emptions.
As one will find, the above measures do not mention the recurring issues
such as exporters’ woes, GST network (mal)functioning, inverted-duty structure,
input credit restrictions and late-fee waivers. The list is a long one and these is-
sues tend to have an impact on the efficacy of India’s business enterprises. The
intent of not listing all of them is not that these issues do not require resolution,
indeed they do. However, this is not the time for the policy-makers to devote
their attention and political capital on resolution of ground-level issues; instead
the focus must be on structural changes that work in tandem with other
measures and thus harness synergies in addressing economic woes.
Evidently, critics may challenge these propositions on the grounds that
they tend to shake up the design. They do, though temporarily and for the great-
er economic good.
[Source : Mukesh Butani & Tarun Jain in Business Standard, New Delhi,
dated 5-6-2020]

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GST LAW TIMES  11th June 2020  52
( A60 )