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Last updated: 10 Aug, 2016  

gst-THMB.jpg GST: The long wait is over, almost

gst-parliament.jpg
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Bikky Khosla | 09 Aug, 2016
The GST will come for sure, it is only a matter of time now . With the passage of the relevant Constitutional amendment bill by both Houses of Parliament, we have taken a giant step towards the biggest tax reform since independence. First conceptualized by Atal Bihari Vajpayee 16 years ago, then introduced formally by  P Chidambaram in his 2010 Budget speech, and now pushed by the Modi government -- after last week's illuminating debate and rare show of unanimity by our legislators who this time put dirty politics behind for what is best for the country -- the decade long effort to turn India into a common market by unifying a plethora of overlapping federal and state taxes finally moved closer to reality.

There is a wide agreement that implementation of the GST would be a boon for the economy. According to an estimate, the proposed single tax structure would add up between 0.5 and 2 percent to GDP, boosting investment by bringing down the cost of capital goods, lifting manufacturing and exports and creating jobs. For the government, GST will widen the tax net, providing higher barrier to tax evasion, besides bringing down cost of tax administration and tax collection. The Indian industry, overall, is also expected to benefit in a big way, as a uniform system will eliminate cascading effects of the bewildering array of current indirect taxes and businesses will be able to operate more efficiently.

Notwithstanding the euphoria, some concerns remain. First, three follow-up legislation still need approval and there must be agreement with states on some contentious issues, including the rates, dual control, exemption list and so on. Also, the IT infrastructure required for GST implementation must be readied fast. Besides, nearly 60,000 central and state tax officials have to be trained on the new tax infrastructure and relevant laws. Considering the work that remains, it does not look an easy task to roll out the legislation on April 1, 2017. Some experts have also viewed that shifting to GST may impact growth and inflation in the short run. These concerns need to be taken into account.

The Indian industry, despite welcoming the development with open arms, has found itself in a fix over a number of issues. Several sectors are of the view that some GST provisions could erode their profits and competitiveness. Some others are pointing out flaws and ambiguities in the bill. SMEs in manufacturing sector are apprehensive as they think that aspects like excise exemption will disappear while their service sector counterparts fear that their tax burden will be greater. In addition, the GST transition will require our businesses too to be ready with proper infrastructure and human resources. The Centre and state governments must work closely with industry in the coming days for an effective GST legislation and its proper implementation.

I invite your opinions.
 
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DOOJAIN TRADELINES FROM PORT BLAIR
DURGA PRASAD SHARMA- 9679508523 | Sat Sep 3 08:55:01 2016
YES IT SHOULD BE 100 PERCENT INTIATED FROM THE NEXT FINANCIAL YEAR, AS PAYING TAX AT EVERY HIERARCHY OF THE TRANSACTION BECOMES A BIG MESS. I SUPPORT TO THIS MOVEMENT OF GST, THANKS TO MODI JI, I SALUTE TO HIS ENDLESS EFFORTS. IT WOULD BE A BIG HELP AND SUPPORT TO PEOPLE THOSE WHO WANT TO WORK BASICALLY, THANK U ONCE AGAIN.


GST
P. Satyanarayan | Thu Aug 11 06:55:09 2016
Good information. The main confusion is that,in what way the end buyers,traders, wholesalers and suppliers get benefits in compare to manufactures. The whole scenario is needs to be clarified in-line with centre and state.


India is not ready for reforms.
TAX REFORM | Wed Aug 10 21:18:23 2016
GST in developing country? That too in India? Is there enough infrastructure with government to stop hawkers from selling goods without GST? or Does Government only want Rich to prosper?


GST
Rajesh Richhariya | Wed Aug 10 15:02:14 2016
Preparation is must by all; IT, Govt officials & users as well but please note that it is one time. The time that might go in gossiping can actually be utilized for preparation. As time is less rather discussing everyone concern must act. If you believe that in long run GST is beneficial its great & if not believe for 2 years. GST has removed walls within country.


GST Long wait is over
Pradip | Wed Aug 10 11:03:54 2016
Lot of apprehension is being raised and it is humane when so ever one has to change from established practice we resist, but for the interest of one nation one tax structure and to move towards developed nation from where so ever we are we need to usher business ethics, policies in line with International norms. As regarding to implementation part and interpretation by 60 k odd Govt. officials just think the way we migrated from typewriter to desktops and now laptops and smartphones, it won't be difficult to switch over and there has to be some competition brought in to upgrade the skill set of these officials. lastly SME and industries shall not scout for tax heavens to set up new ventures and there shall least movement of Goods since lot of logistics burden is being shouldered due to purchase of items from one state to other depending upon tax being levied to earn more profits. hopefully corruption would reduce from the point that Govt. Officials interpret present rules to harass SME's for sending Notices on whimsical grounds due to loop holes in Tax rules and creating red trapezium for personal gains. On one hand we aspire to be developed Nation and do not practise or make a single effort to clean the system, this double talk should be stopped forthwith. another vital point which needs to be emphasised is that today education system has advanced in leaps and bounds and why then we cannot adapt simple, single tax regime and concentrate on fruitful efforts than futile efforts.


GST RELATED NEWS LETTERS
Babulal | Wed Aug 10 09:18:26 2016
Good Information. Suggest, keep posting the latest developments


GST EXEMPTION FOR EXPORTERS
PRASHANT KAMAT | Wed Aug 10 08:10:39 2016
THANKS FOR YOUR REGULAR NEWSLETTERS. FOR A MERCHANT EXPORTER WOULD THE GST EXEMPTION FORMALITY BE SIMILAR TO THAT WHICH IS CURRENTLY FOR SALES TAX.


Evasion.
vivek arora | Wed Aug 10 07:36:48 2016
8 months time is enough for corrupt sales tax officials, corrupt traders, corrupt manufacturers and corrupt accountants to device ways to evade even the most simplified GST.


GST
Subramanian Manikkam | Wed Aug 10 07:34:00 2016
Good Information. Suggest, keep posting the latest developments and the implementation dates as it becomes effective. This should definitely reduce unbilled transactions in Cash as demanded by some Buyers.


GST
R S MANTRI | Wed Aug 10 05:33:23 2016
Sincerely appreciate the article. Its time when services of private practicing Doctors and Advocates be brought in the regime. 2.Tribunal should be the Final and NO grading in Juri.Courts.

  Re: GST
vivek arora | Wed Aug 10 07:38:30 2016
Most Doctors and advocates are already fleecing the clients. GST on such services will further burden the common man.


implementation of GST
RAMA RAO MADDI, ONGOLE | Wed Aug 10 05:32:30 2016
Nice presentation, hope will boost our industry, it depends on effective implementation and forming act.


How it all work?
Abhinav Shrivastava | Wed Aug 10 05:27:39 2016
Would you really think that GST would change the Indian economy and if yes, than what would be the effect to SME's properly ??? and 2nd question is how a common man get effected by this in his daily life ?


GST RELATED NEWS LETTERS
NARAIN CHAWLA | Wed Aug 10 05:13:50 2016
Really these newsletters are of great help in educating the people concerned with business for the awareness with new laws which they are unaware of thanks for updating us.


Good article
Manish | Wed Aug 10 04:55:24 2016
Still little confusion over GST. Which commodities are included and which are excluded. Can you please tell us.


 
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