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GST: Knocking the Door

Both the houses (Rajya Sabha and Lok Sabha) pass the Constitutional Amendment Bill on GST and GST is a reality now. One can hope that the law will be applicable from next financial year i.e. 1st April 2017.

What’s New?

Taxes that are being subsumed under GST


Pros of GST for Industry

GST being one of the biggest tax reforms in India has to meet the expectations of the common man without hampering the interest of the Government and the businesses. The proposed GST regime will incorporate following benefits:

  • No Cascading of Taxes as tax will be paid only on the value addition at each stage

  • Reduced compliance cost

  • Seamless flow of credit

  • No Entry tax under GST Regime will save time and cost

  • Drastic reduction in interpretational issues

Changes are inevitable

  • The key amendments in draft Bill is to be passed in Lok Sabha by 2-3rd majority

  • GST will bring N-number of changes ranging from transfer of existing Departmental Officers under various Laws to become the Officers under GST Law to procedural changes in business operations w.r.t. Tax compliances

  • GST will incorporate IT reforms in Taxation Departments

  • Rates, Procedures, Return filing, etc are yet to be drafted

  • Electronic Reforms through automation to cope up with much awaited industry requirement of management through electronic mode

A step ahead….

An organization must take a step ahead to be fully prepared before new tax regime is fully implemented through

  • IDT impact analysis

  • Working capital management to meet GST requirement

  • IT implementation within organization

  • Training of management and personnel

  • Accounting and Reporting

  • Compliance and procedural change

  • Advocacy

Industry wise Analysis by ASC

Logistics Industry

  • A direct beneficiary under new system

  • Tax Compliance Reduced

  • Reduction in transit time

  • Benefit transporter and manufacturer

  • Interstate trade barriers reduced

Automobile Industry

  • At least 8% reduction in tax rates expected

  • On road Vehicle cost expected to drop

  • Margin of manufacturer may expand

  • Logistic hurdles to be minimized

Consumer Good Industry

  • Saving 30% of logistics Cost

  • Reduced inter state barrier and compliances

  • Average indirect tax to reduce to proposed 18% from current average of 25%

  • Lower price to consumer

IT Industry

  • Increase in tax rate

  • Increased working capital requirement

  • Opportunity of more business as impact of growth in other industry

  • Eliminate multiple levies

E-Commerce Industry

  • Uniform market in India

  • Taxation system at par with international standard

  • Free movement of supply

  • Reduced state-specific rigmarole

  • Ease in compliances

Lets Gear Up, with ASC

  • ASC has dedicated Teams of experts for Indirect Tax, serving a fast changing economy over decades.

  • ASC is serving industry through its expertise in the field of Excise, Service Tax, Customs and All India VAT in the field of Indirect Tax.

  • ASC is well known in market for its unique idea in publishing Book “All India VAT Ready Reckoner”.

  • With its exclusive and vast experience in IDT, ASC is ready to implement GST in corporate.

  • Recent updates regarding GST Bill has kept our Indirect tax team on its toes.

  • The team has conducted detailed study of Draft Model GST Law understanding its provisions.