GD/PI / #GD Topic

April 04, 2017 @ 01:15 PM

April 04, 2017 @ 01:15 PM

K. J. Somaiya Institute of Management Studies and Research, Mumbai

9 Easy Steps to register for SIMSR (Infographic)

Download Now

Non execution of GST bill might herald end of present government

Published : Saturday, 09 January, 2016 08:35 AM

Non execution of GST bill might herald end of present government

After the results for CAT XAT IIFT SNAP CMAT MAT and NMAT re out, you will be invited for GD and it is must for you to practice with variety of GD topics.
Read and develop points for discussion on GD Burning topic:   Non execution of GST bill might herald end of present government

The resounding victory of the BJP led National Democratic Alliance in the 2014 general elections infused a sense of optimism and raised hopes of the people of the country, especially after the apparent despondency around UPA 2 regime. The flip side of such a landslide triumph is that people look towards the government with unbound expectations, expect miracles and if the government does not meet these expectations quickly, a sense of disillusionment spreads among the people.

A. The government,led by Prime Minister Narendra Modi, has worked with great alacrity to restore India’s credibility in the world by introducing a slew of innovative measures such as ‘Swacch Bharat Abhiyan’, ‘Smart City Project’, ‘Make in India’, ‘Pradhan Mantri Jan DhanYojana’ to name a few. All these measures have been introduced to fast track growth and make India an attractive destination. Crucial to achieving this target is the GST (Goods and Services Tax) Bill. The BJP’s poll manifesto clearly highlighted its resolve to implement the GST Bill as it was believed to be crucial to India’s development. But, the Bill has failed to see the light of the day even after a year since Narendra Modi assumed office. This can have a crippling effect on the government’s plans to build the Indian economy, send a wrong signal to the world about India’s advancement on the much needed reforms and may even be disastrous for the government’s prospects.

B. Why is the GST so important? The GST is India’s most important indirect tax reform, and it proposes a national value added tax to be implemented in India. It will subsume most indirect taxes such as excise duty, service tax and VAT and significantly improve tax revenues over a period of time. A simple tax structure is expected to improve the ease of doing business in India and incentivise foreign investors to invest in the country. Economists estimate up to 2 per cent addition to the country’s GDP when the GST improves tax revenues.

C. The recent winter session of the Parliament which ended on 23 December 2015 was lost to the logjam between the government and the opposition. As a result, the GST Bill remains stuck in the Rajya Sabha where the government does not have the numbers in its favour. This has jeopardised the government’s plan to roll out the GST by 1st April 2016. Ironically, the previous government led by UPA, too, tried to introduce the GST but could not see it through. Clearly, the GST is considered crucial for growth by most political parties and yet, lack of consensus on few sticking points, means that India will have to wait some more.

D. The question, therefore arises, can India afford to wait? The answer, I am sure, is no. The failure to pass the GST soon will stall the next phase of development, hurt the new found image of India as a country taking rapid strides to reform the business climate as well as improving the quality of life of its people and will also be a personal blow to Narendra Modi and his pro-development agenda.

E. I agree that the Modi government will suffer if the GST is not passed. Much like the UPA 2 government, which was plagued by a ‘policy paralyses’ that severely dented its image, the Modi government, which has projected itself as pro-development and an agent of change, runs the risk of losing people’s confidence. This is because the general air of despondency in the Indian economy which followed scams like the 2G scam, Commonwealth scam and the Coal scam might set in again if the people feel that the present government is all talk and no action. This can prove fatal for the government in the next general elections.

F. Failure to pass the GST Bill will also give ammunition to the critics of the government who have cited absence of major reforms, except a few steps like FDI liberalization. At a time when industry leaders over the world are looking at this bill with much anticipation and excitement and there is a sense of positivity around India, it will only benefit the government and the country if this mood can be capitalised by removing bottlenecks and aggressively pursuing reforms. The GST is, thus, central to the government’s prospects.

G. Passage of GST will also help the government win the battle of perceptions (after the failed attempt to pass the Land Bill) and will also restore Modi’s image as a pro-development leader and a reformist. This will enable him to attract more foreign investments to India and support the social welfare schemes which can improve the quality of life of the people of the country.

Thus, for India to harness the positivity that followed BJP’s historic victory, the government needs to find a way of executing the GST Bill, touted by many as the single most important reform in over a decade. Inability to do it will create negative publicity for India across the world, hinder development and eventually harm the interests of the government too.

Read 100 Top GD Burning Topics

Stay informed, Stay ahead and stay inspired with MBA Rendezvous

Crucial Dates, You Should not Miss

Manav Rachna International Institute
of Research

Admissions Open for all MBA programme at Manav Rachna International Institute of
Research and Studies.
CII School of Logistics Amity University, Delhi and Mumbai
Admissions Open at CII School of Logistics Delhi and Mumbai campus, Apply Now!
GITAM School of International Business, Visakhapatnam
Admissions open for MBA programmes at GITAM. Application Deadline is February 20, 2018
Application Last Date for Online Submission - February 25, 2018
TAPMI, Manipal
Last date extended to 11 February, 2018. Apply Now.
BIMTECH, Greater Noida
Admissions open at BIMTECH, Greater Noida
Lal Bahadur Shastri Institute of Management
Admissions are Open at LBSIM, Delhi. Apply Now !
FORE School of Management
Apply for PGDM & PGDM-IB Programmes. Application Deadline is January 18, 2018.
MDI Murshidabad
Applications for PGPM 2018-20 at MDI Murshidabad are open
Last Date to Apply for MBA (Full Time) Programme at NIRMA is January 29, 2018
Institute of Public Enterprise, Hyderabad
Last Date to Apply for IPE, Hyderabad is 21st January, 2018
IMI New Delhi
Admissions Reopened for PGDM Last Date to Apply January 21, 2018
Application closes on February 12, 2018 for Executive PGDM at IMI
Institute of Rural Management Anand
IRMASAT will be conducted on February 4,2018, Apply Before January 20,2018
ICFAI Business School
Admissions Open at ICFAI Business School Apply Now!
K J Somaiya Institute of Management Studies & Research, Mumbai
Last date for Application is 31st Jan, 2018
Application for PGDM 2018-20 at SDMIMD is open till February 28, 2018

Admission Open Now

Following Colleges are accepting applications.


Admissions open for 2018-20

PGDM, PGDM (HRM), PGDM(B & FS), Executive PGDM

Apply Online
Get Connected with your Dream College  
Get Connected with your Dream College

Thank you