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.
The Constitution Amendment Bill for GST passed in the Rajya Sabha.
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
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
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
A direct beneficiary under new system
Tax Compliance Reduced
Reduction in transit time
Benefit transporter and manufacturer
Interstate trade barriers reduced
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
Increase in tax rate
Increased working capital requirement
Opportunity of more business as impact of growth in other industry
Eliminate multiple levies
Uniform market in India
Taxation system at par with international standard
Free movement of supply
Reduced state-specific rigmarole
Ease in compliances
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.