Why only common man is liable to pay actual gst?

This query is : Open

Shailesh Kanth (Querist)
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13 July 2017 Respected All,

While having a comparative study between Present & Previous Taxation System, we observe that in present system of taxation the actual liability of GST is only on Common Man and not on Business Entity. In previous taxation system even business entity as end consumer was liable to pay VAT, because retail invoice was considered as end consumer irrespective common man or business entity. Thus the receipt of GST may increase but income through GST will decrease, because business entity is not going to pay actual GST on end consumed products and services.

Thanking You,
Shailesh Kanth

CA Sheonarain

CA Sheonarain (Expert)
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13 July 2017 Burden of all indirect taxes is always bear by a customer. if a business entity which is consuming any service or goods in its business activity as inputs but not availing input tax credit because its output is not a taxable supply then it cannot be said that business entity is bearing taxes paid on inputs. In that case business entity will load equivalent amount in its margin of the final product. Ultimately burden will be on customer.

Shailesh Kanth

Shailesh Kanth (Querist)
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19 July 2017 Respected Sir,
As per my knowledge indirect tax collection base is end consumer of goods or services either is common man or business entity. As we know the selling price of any product is made by considering its purchase & direct expenses involved in it. In GST provision it is made to gate the benifits even on end consumed product or services,which is not at all effecting the selling price. That's why GST on indirect expenses is extra burden on customer. In this way this GST collected from customer is not going to the Government account, which is not appropriate at all in my view.

Thanking You,
Shailesh Kanth

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