Skip to main content

Inequities in India's Taxation: Unfolding the GST Council's Ironies .

 Introduction:

The GST Council in India convenes periodically to discuss and refine tax structures. Each meeting brings forth a mix of positive and negative developments, often revealing new ironies and fallacies within the economy. 

This article sheds light on certain inconsistencies, focusing on the taxation of non-branded atta or wheat, the exemption of cricket games like IPL from GST, and the associated revenue generation.

Taxing Essentials, Exempting Entertainment:

One of the glaring ironies in the Indian tax system is the imposition of GST on non-branded atta or wheat, an essential commodity consumed by the poor. Despite the burden on those struggling to make ends meet, cricket, a form of entertainment, remains exempt from GST. The Board of Control for Cricket in India (BCCI), the governing body of cricket in India, enjoys tax-free status despite being the wealthiest cricket governing body globally.

Example: A daily wage laborer, striving to feed his family, pays GST on every essential commodity he purchases, including food. Meanwhile, cricket, which garners substantial revenue, remains untaxed.

Taxing Fantasy Apps vs. Taxing IPL:

The disparity in taxation becomes even more pronounced when comparing fantasy gaming apps, taxed up to 28%, with the Indian Premier League (IPL), which remains tax-exempt. The IPL, a lucrative sporting event, generates substantial revenues from advertisements and broadcast deals. Despite this, the government does not directly benefit from this income.

Example: The estimated ad revenue of IPL 2023 crossed ₹10,000 crore, yet the government receives no share of this significant sum, while other industries face higher tax rates.

Cricket Promotion vs. Taxpayer's Burden:

The rationale behind the tax exemption for IPL lies in promoting cricket. However, cricket is already a well-established sport in India and enjoys immense popularity. At this stage, it becomes crucial to examine whether the promotion rationale still holds validity, or if the focus should shift towards ensuring that the sport contributes its fair share to the nation's coffers.

Example: As hardworking taxpayers diligently pay their dues to the government, the tax-free status of IPL could be seen as an unfair advantage, especially when other industries face higher taxation.

Conclusion:

The disparities in India's tax structure, as exposed by the GST Council, raise pertinent questions about fairness and equity. While essentials are taxed, entertainment, such as IPL, remains exempt. 

The time has come to reevaluate the tax policies surrounding cricket and ensure that it contributes its due share towards the nation's progress.

Labels:

Comments

Post a Comment

Popular posts from this blog

Exploring the Paradox of Academic Excellence and Real-World Incompetence

Exploring the Paradox of Academic Excellence and Real-World Incompetence Unraveling the Dichotomy of Academic Brilliance and Practical Inefficiency Over the years, I have had the privilege of interacting with a diverse array of students, ranging from mature learners, parent-students, to research scholars. These individuals, adept at navigating their professional lives, often exhibit a unique perspective towards education, viewing it as a communal activity or a sacred journey of enlightenment and progress. However, a striking observation that emerges from my interactions with these research scholars and students is their ability to circumvent the conventional education system to achieve their academic goals. This phenomenon is not a reflection of their intellectual prowess but rather an indication of their survival instinct in a system that values degrees over knowledge. For instance, many of these students have been nurtured by 'helicopter paren...
2 comments
Read more

The Three Ingredient Cow Dung Brick Formula

Cow Dung Brick Formula 🐮 The Three Ingredient Cow Dung Brick Formula: Lime, Straw, and Gobar 🏠 Cow dung has been used as a traditional building material in India for centuries. They are an eco-friendly 🍃 and affordable 💰 alternative to conventional bricks, made from clay and cement. Cow dung is abundant in rural India, and its use in brick-making provides a sustainable and cost-effective solution to meet the building needs of rural communities. The addition of lime and straw to cow dung helps to improve the strength and durability of the bricks, making them suitable for various applications. In this article, we will explore the three-ingredient cow dung brick recipe, which includes lime, straw, and gobar, and how to tinker 🔧 with the recipe to arrive at the perfect mix. 🎯 The Three-Ingredient Cow Dung Brick Formula: The three-ingredient cow dung brick recipe includes cow dung, lime, and straw. Cow dung is used as the prima...
2 comments
Read more

IIT Madras Launches Department of Medical Sciences and Technology

IIT Madras, a renowned educational institution, has taken a significant step towards integrating medical science and technology by introducing the Department of Medical Sciences and Technology. This initiative aims to explore the potential of advancements in medical science and technology, particularly in the context of the increasing reliance on Artificial Intelligence (AI) in the field. In a press release issued by IIT Madras , it was revealed that the department will adopt an interdisciplinary approach to prepare students for various domains within the field. The curriculum will focus on designing life-saving medical devices, drug discovery, the application of AI in medicine, and fundamental medical research. Furthermore, the department aims to train physicians to effectively utilize technology in their clinical practice and pave the way for physician-scientist training in India.                          The p...
4 comments
Read more