India will adopt its most comprehensive indirect tax reform—the goods and services tax (GST)—on July 1. As the deadline draws closer, there is a mad rush to get ready for a revamp which most find too complex and tedious.
From the government to small businesses, all stakeholders are anxious for a smooth rollout of the GST. We list below the preparations going on at various levels for the July 1 deadline:
The GST Council is not done with its business yet. It has yet to finalise several remaining issues that include taxation of lotteries and controversial e-way bills, which relate to transport of goods across state lines and might be delayed. A committee of officials is also finalising the mechanism for the anti-profiteering law, though it is not necessarily linked to the rollout. Click to read more
New tax regime requires service firms to get registrations done in each state where it has operations
With just 15 days remaining for the rollout of the new tax regime, experts have raised a red flag over challenges faced by the services sector in moving to the Goods and Services Tax system.
The key issue is that the GST Network is yet to begin accepting fresh registrations. Till now, the GSTN portal, which was open for a month in April and again for 15 days in June, has only been accepting requests for migration from the current regime to the GST system. Click to read more
The Goods and Services Tax (GST) has been finalised for almost all items by the GST Council led by Finance Minister Arun Jaitley. The council concluded its 16th meeting on June 11 where rates for 66 items were revised.
Most of the goods and services have been listed under the four broad tax slabs- 5 per cent, 12 per cent, 18 per cent and 28 per cent. However, some items like gold and rough diamonds have exclusive tax rates. Also, some items have been exempted from taxation. Click to read more
The Goods and Service Tax (GST) which aims at bringing various types of direct and indirect taxes under one roof. India moved a step closer to becoming a unified market in line with the federalist vision of the architects of its Constitution with the tabling it in Parliament. The implementation of GST will lead to the abolition of existing taxes such as excise duty, service tax, central sales tax, State-level sales tax, turnover tax, etc. thus avoiding multiple layers of taxation that currently exist in India. Another reason to go the GST way is to facilitate seamless credit across the entire supply chain and across all States under a common tax base which is not available in the current scenario. Click to read more
Revenue Secretary Hasmukh Adhia is a man on a mission. While taking charge in September 2015, Adhia had singled out the implementation of the Goods and Services Tax (GST) in a “time-bound manner” as his top priority. His resolve is close to fruition, with the GST — considered the biggest indirect tax reform since Independence — set to roll out from July 1. With the countdown for the unveiling of the reform having begun, Adhia is at the forefront of creating awareness about the GST regime, touring states across the country and interacting with the industry. Click to read more
Jammu and Kashmir’s main opposition National Conference (NC) on Wednesday insisted that GST implementation will lead to surrender of the state’s constitutional powers to the Centre, and said it will oppose the move.
NC leader Abdur Rahim Rather said implementing GST at the cost of the state’s financial autonomy is unacceptable to his party and the state’s people. He added that the extension of 101 Amendment Act of the Constitution to the state would “erode the state’s fiscal autonomy”. Rather questioned Finance Minister Haseeb Drabu’s role in reviewing sales tax. Click to read more
A leading private bank has sent out mails to its customers suggesting that this may be the best time to buy cars, since GST may push up prices — something that the government has denied. Even the automobile industry admits that barring hybrids and some small diesel-powered vehicles, prices may not increase.
Banks are not the only ones playing on the ‘fear’ of GST to prop up business. Companies from sectors as diverse as garments and white goods are using their dealers to offload stocks through discounts. Click to read more
A proper GST invoice is critical to error-free return filing. Here’s everything you should know about how to go about preparing a GST compliant invoice,
Come July 1, every seller registered under Goods and Services Tax (GST) will have to issue a GST compliant invoice. GST is going to be an integrated system of buyers and sellers, which means one person’s supply must match another’s purchase. Therefore, issuing a proper GST invoice is critical to successful return filing.
Let’s understand more about invoicing under GST. Click to read more