GST impact on higher tax liability for Salaried Class should be settled against tax credit
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GST is a revolution and it certainly will help broaden tax base which would be positive for India. As a honest tax payers we support the move as it will mean government have more resources to provide better infra, social services etc to much needed 1.25 billion Indians.
However, there are huge implication on the honest taxpayers primarily from Salaried class / non tax credited segment. As all the incremental liability has been transferred to us. While Self Employed / Business owners also get input tax credit to be adjusted against the total liability, we salaried class are paying extra amount in GST. For ex: On using taxi services now we have to pay 18% extra as GST, for play school 18% which are incrementally higher than what we used to pay earlier as service tax.
Benefits of lower GST hasn't been passed on to us but higher side of GST has been passed on to us resulting in higher costs for goods and services for us.
We are not demanding a roll back of GST, rather we are requesting to extend tax credit to Salaried Class / non tax credit segment as well for amount which is paid extra. We honestly pay income taxes and with widening tax base we shouldn't be charged further extra and if we are then we should get that money back in tax credit.
An honest tax payer
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