GST and its impact on YOU!

Lord Nemesis

Overlord
Skilled
The one thing that won't come under GST is petroleum and that's because we are being made to pay 160% tax on its actual price of Rs 29/litre (including oil companies profit margin) and moving to GST regime would mean tax would get significantly reduced even at 28%. Instead the govt wants people to blame oil companies and maybe even come as the hero in future by trying to regulate prices the oil companies expense.
 

NotMyRealName

Well-Known Member
Skilled
What i don't understand is even though liquor is also exempt from gst it's much cheaper. Any bar i go to, food is taxed at 18% but booze wonly 6% vat! What gives?

Edit: only 5% in new bombay
 

Lord Nemesis

Overlord
Skilled
https://www.ndtv.com/india-news/bjp...l-film-mersal-wants-dialogues-deleted-1765069

BJP (Govt) is trying to censor a Tamil movie for raising some very basic, but uncomfortable questions on GST. If they succeed in this, it is the beginning of the end for freedom in India. Soon there would be widespread censorship of the media too.

Singapore has free or subsidized healthcare and they still collect only 7% GST. We have up to 18 or 28% GST on most of the categories and we have nothing to speak for it. Why is this a question that needs to be censored?

Forget about healthcare, we don't have basic things like usable roads even in the big cities like Hyderabad or Bangalore that generate significant amount of both direct and indirect taxes.
 

Lord Nemesis

Overlord
Skilled
Are you saying that killing off hundreds of aged people as they waited for 6-8 hours in bank and ATM queues during demonetization is a well researched and deliberately planned outcome? I am assuming you are being sarcastic
 

vivek.krishnan

If you cant see the green dot, I'm offline :P
Skilled
Can someone honestly tell me if GST has received a positive/negative response from traders, SME owners, entrepreneurs and others who will most likely have to revise their business model.

The aforementioned have a right to voice their opinions/suspicions if the current central government extemporaneously implemented the new GST model because it was never part of the original Demonetisation plan. Let me make it very clear that i'm giving the central government the benefit of the doubt by assuming that their original Demonetisation plan was well-researched, well-planned and well-documented even though the same plan may have not considered implementing the new GST model.

For those who will have to revise their business model? Nopes. They are against GST.
 

6pack

Well-Known Member
ex-Mod
The unreasonable registration fee for land sales especially coupled with the fact that it is often purchased and sold as an investment is one of the reasons real estate transactions involves black money for the most part.

we should go the japanese way and depricate land prices and building prices by age. In Japan land prices have no value. Only the new buildings built on them have value.
 

nimod

Well-Known Member
Adept
we should go the japanese way and depricate land prices and building prices by age. In Japan land prices have no value. Only the new buildings built on them have value.

Its pure emulation.
You should rethink about utility of land (as a valuable asses) for Indians.
 

6pack

Well-Known Member
ex-Mod
Land has no value. It's only valuable if you're growing crops on it. Once you build cement buildings and put sewage lines through it you have killed whatever value it had.

Whatever value you're talking of is notional value which can fall down through the roof in a few hours. The govt can do the same thing with real estate like they did with the notes and everyone will be jumping off roofs cause they thought their 25 lakh flat should sell for 2 crores now because India has lots of wealthy people now.
 

vivek.krishnan

If you cant see the green dot, I'm offline :P
Skilled
we should go the japanese way and depricate land prices and building prices by age. In Japan land prices have no value. Only the new buildings built on them have value.

Why stop at buildings then, let's do that for gold and other things, liquor included.

What works for Japan may not work for India.
 

NotMyRealName

Well-Known Member
Skilled
The value is in the space people can rest their heads or whatever. Every value is not immedtiately visible, obvious or even tangible.

Roti, kapda makaan ... basic necessities.

A 500 square meter piece of land allows, for example, 40 people to shelter in safety and security. So just like agricultural land has value for growing crops, others also do.

No idea wtf is the scene in japan. If land has no value and only new buildings, i'll just go there and park my fleet of RVs and live happily on the govts. property.
 

6pack

Well-Known Member
ex-Mod
You people may get angry but the reason the value is going up is because people are taking advantage of their money to park in real estate. you may have just 1-2 homes that you bought taking loans etc. Just imagine that houses were really cheap and you didn't have to take loans at atrocious rates from lenders to buy a house. There is no deficiency in houses for sale. There are more houses on rent than on sale in Mumbai now because everyone who bought 2-3 flats looks at it from a view point of investment.

If the investment angle was removed, then all the houses would cost less than 1 crore. The government is also to blame because they became greedy and have lots of builder friends who drive the price of land upwards. There's no way land costs 500 crores to buy etc in Mumbai. Yet you read in newspapers that some builder bought some old mill land for a few thousand crores. Just to get back his investment on the land he will have to build a couple thousand flats and sell them in crores. If the land cost was peanuts, he wouldn't have to worry about spending that much money on the land and sell the fats for much less than a crore even if he built a thousand flats. Government artificially limiting building height is another reason to blame. The BMC gets thousands of crores and does not spend on building or maintaining infrastructure. Most of it is spent by state government and railways on roads/ flyovers/ trains/ metros. You hear bmc spent money on roads but all they do is give money to their favourite contractor for digging good roads and making them worse so that they can waste peoples money.

Why stop at buildings then, let's do that for gold and other things, liquor included.
Gold is a good idea. People would buy and sell more gold and there will be money in circulation.
I don't understand how liquor comes into the picture. Is it that costly and prices are artificially inflated that its out of reach?
 

Crapmypants

Well-Known Member
Adept
^That movie would've come and gone but now that the TN BJP made some noise about it they're having a full-on streisand effect.

Gold is a good idea. People would buy and sell more gold and there will be money in circulation.
I don't understand how liquor comes into the picture. Is it that costly and prices are artificially inflated that its out of reach?

Easy trading of gold will lead to a whole new group of scammers and frauds. Plus, it's still heavily used as a form of savings by households.
Liquor gets a double shot of high taxes and practically no new players allowed. Outside of Bira I can't think of any domestic brewery that's come up in the last 2 decades.
 

NotMyRealName

Well-Known Member
Skilled
You people may get angry but the reason the value is going up is because people are taking advantage of their money to park in real estate. you may have just 1-2 homes that you bought taking loans etc. Just imagine that houses were really cheap and you didn't have to take loans at atrocious rates from lenders to buy a house. There is no deficiency in houses for sale. There are more houses on rent than on sale in Mumbai now because everyone who bought 2-3 flats looks at it from a view point of investment.

If the investment angle was removed, then all the houses would cost less than 1 crore. The government is also to blame because they became greedy and have lots of builder friends who drive the price of land upwards. There's no way land costs 500 crores to buy etc in Mumbai. Yet you read in newspapers that some builder bought some old mill land for a few thousand crores. Just to get back his investment on the land he will have to build a couple thousand flats and sell them in crores. If the land cost was peanuts, he wouldn't have to worry about spending that much money on the land and sell the fats for much less than a crore even if he built a thousand flats. Government artificially limiting building height is another reason to blame. The BMC gets thousands of crores and does not spend on building or maintaining infrastructure. Most of it is spent by state government and railways on roads/ flyovers/ trains/ metros. You hear bmc spent money on roads but all they do is give money to their favourite contractor for digging good roads and making them worse so that they can waste peoples money.


Gold is a good idea. People would buy and sell more gold and there will be money in circulation.
I don't understand how liquor comes into the picture. Is it that costly and prices are artificially inflated that its out of reach?

You are absolutely right that investment properties have driven up the cost of all real estate. And genuine end-users suffer. And yes the govt. is definitely to blame for the high prices they sell/lease land to developers. My friend works with a real estate firm and he was explaining the cost break up of a property. And the land value itself makes up the bulk of the final cost.
 

6pack

Well-Known Member
ex-Mod
Easy trading of gold will lead to a whole new group of scammers and frauds. Plus, it's still heavily used as a form of savings by households.
Liquor gets a double shot of high taxes and practically no new players allowed. Outside of Bira I can't think of any domestic brewery that's come up in the last 2 decades.
There are already scammers and fraud now regarding gold. Even the neighborhood gold makers skim gold off customers metal or give them gold mixed with silver etc. Normal person cant make out purity of gold from the shop they bought it from even if the gold has BIS mark or whatever its called.

But can liquor be put in the same category of essentials like housing? High end liquor is like a fad or lets say its upto individual tastes. Poor people get by with locally made liquor and middle class drink beer to get their liquor dosage. Domestic brewery not coming up maybe because there is no water or people don't have expertise in making fine liquor. Wine growing has sprung up all over Maharashtra in last few decades though. Most of it is for export I think cause thats where the growers get to become rich. Maybe its the same with beer and hard liquor. Maybe companies export it to other countries where they get higher return for their products. Can't blame govt for greed of companies who want to export all the good stuff abroad and sell cheap stuff here at high prices.

You are absolutely right that investment properties have driven up the cost of all real estate. And genuine end-users suffer. And yes the govt. is definitely to blame for the high prices they sell/lease land to developers. My friend works with a real estate firm and he was explaining the cost break up of a property. And the land value itself makes up the bulk of the final cost.

Yeah. In my building there are a few real estate developers and agents. Just look at it this way. All the houses suffer from the salty sea breeze and last just 25-30 years max no matter whether we paid 25 lakhs or 2-3 crores for it. Imo the higher costing houses don't fare any better in quality. All of them start developing rainfall leakage problems after few years or have stress cracks etc.

This is why I was telling that its in our interest to get prices lowered with each year. With the price of homes decreasing every year, the investment angle will go away. No one will want to buy some deprecating asset other than genuine people who want to live in a house for the next 20+ years. Instead of getting 400-600sqft houses in crores now you could easily get a 1000sqft flat in less than a crore. There's no need to feel bad for people who "invested" because either way they have already made money by leasing the flat all these years etc.

There is also another good point of view to this. Since houses start developing cracks, leakages, etc and like you keep reading in news papers that old building are falling down, the reduced prices of homes can lead to increase in redeveloping the old broken down properties or at-least allow the existing house owners to get repairs done in less cost. Builders wont be looking at old building like a piece of meat cause they wont get anything from it.

Also I thought about this: its true that what works in Japan or other countries will not work here. So its better to make our own equation. Lets say that max in 30 years the price of a flat will come down to 30% of its cost. So if I bought a flat for 30L, its cost will go down by 9 L every 10 years. 30 years is the average life of a concrete structure here. Would I feel bad, yes a little, but, as a genuine house owner, I have already stayed in my home and made use of it for 30 years. In 30 years time I would have enough money to get another new home for 30 lakhs. i'd probably get a better built home since with price of land gone out of the equation, builders will compete on quality of the buildings and hopefully we get standardized windows, doors, straight walls without any lumps here and there, and well designed flats.

Another thought that came to my mind is this: All the high prices leads to money getting circulated only amongst the rich people making them even richer. Builders are already rich to buy land in crores. They then sell flats to rich people who buy it in crores. So money goes from one rich person to another. Whatever profit the builder makes will probably be stashed away in foreign countries banks and very little profit shown here. Some guys even show loss since they can get away without paying taxes for 2-3 years on one years financial loss. Due to this loss of taxes govt does one thing it knows quite well - tax the poor and middle class as much as they can. Ultimately we common people suffer since small tax increases don't affect the rich people. They will just reduce wages of their employees or wont increase wages etc saying their company is making loss. Low or stagnant salary = more months before you could buy your dream house or more months gone towards paying some stupid loan.
 

pratikb

Well-Known Member
Skilled
The one thing that won't come under GST is petroleum and that's because we are being made to pay 160% tax on its actual price of Rs 29/litre (including oil companies profit margin) and moving to GST regime would mean tax would get significantly reduced even at 28%. Instead the govt wants people to blame oil companies and maybe even come as the hero in future by trying to regulate prices the oil companies expense.
It would be under gst by next year.[DOUBLEPOST=1509459019][/DOUBLEPOST]
The site
Quint
Wire

All sorts of anti development negative sites. Whts their credibility?
Care to explain?
 
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