GST has 2 aspects to it
1. Rate where multiple indirect taxes subsumed into 1 rate making it administratively much easier 2 manage &
2. the impact of it on biz.

since a lot hs bn discussed on rate aspect by now I wud like share my thoughts abt impact of GST on biz.

1/n I will share this majorly frm mfg perspective as that is where the impact will be widely felt.
Its imp 2 u/s how indian mfg industry was structured in pre GST era.
a full container load from chennai 2 delhi used to take @ 14-16 days.

2/n

Why is Auto Industry Bleeding currently?
1. Post GST truck & CV movements have improved by anywhere between 30-40% due to removal of hurdles at border checks.. this has improved existing vehicle utilization by 30%
2. Govt has increased the allowable tonnage load by 25%
1/n 3. both these factors have improved comm vehicles utilization by almost 50-60%..
4. this means for existing fleet to reach optimal utilization, it needs 50-60% more load than earlier before new vehicles can b planned
5. Regulation change from BS4 to BS6 wef from 1/4/2020

2/n

Make in India (MII)
A pre commercial run of Vande Bharat Express stopped for a brief while for some technical snag n all wizards in Ind started giving gyaan on how MII has failed n what must b done 2 fix it.
well, wht exactly is MII?
Let me try to explain it here..

1/n MII is not a short term project but long term deep thought on looking to make things in india instead of importing it from outside or making it on foreign soil for our export market..

Its like a challenge thrown by PM to our manufacturers..

2/n

2 friends one in mid 30's (F1) and another in mid 40s (F2) met up after almost a decade.. after sometime the conversation was about politics and slowly they were up n about discussing the situation over past 5 yrs..

The conversation went as thus -

1/n F1: hey have u seen the way India has zoomed back into the top 5 economies of the world?
F2: yes, I heard that. Infact they r on the verge of moving into 4th spot pretty soon n into 3rd spot in next 5 yrs or so if the same level of pace continues

2/n

Dear fellow Indians, v hv stood firmly by BJP govt thru Demon, GST & many othr systemic changes tht ths govt has brot abt over past 5 yrs. v hear of doubling IT returns filers & huge surge in Tax collections & its pretty obvious v r all expecting some gains thru IT relief
1/n In the next few tweets I try to analyze this demand of ours through data from past several yrs.. kindly have a look at the attached pic for the data..
Lets see is the govt finances really ready at this stage to pass on some significant tax savings to us?

2/n

Common man often grudges that Modi govt did not reduce petrol price when crude oil prices were dropping.

Let's see y

1. petrol was deregulated in jun 2010 n diesel in 2014
2. Pls see the attached picture for trend of crude price vs petrol & diesel prices from 2006 to 2016

1/n 3. As u can see between 2009 and 2014 crude has climbed up every year however petrol and diesel have not gone up in similar proportion. This difference was met through subsidies.

2/n