GST-What's it.....! What's in store ......!

Journey to GST and understanding business effects

India took first step towards unified tax on goods and services [upon Parliament clearing the Constitutional Amendment Bill (the Bill)] on August 8, 2016.

Of course, to reach destination, it has to travel a long journey (in the company of the Stakeholders) and as envisaged the route would be (likely timeline indicated in brackets):

  • Passage of the Bill by:
  • the legislatures of at least 50% of the States (achieved);
  • President's assent and the Notification of the Bill (received);
  • Constitution of the Goods and Services Tax Council ("GST Council"/ "Council"/"GSTC") (constituted);
  • Recommendations on various matters entrusted to the Council (between September 2016 and Winter session of Parliament);
  • Enactment of laws (in Winter session 2016);
  • Framing Rules (after enactment of laws);
  • Notification thereof;
  • GST Network for automation (November 2016 to March 2017); and
  • Training and putting infrastructure in place (August 2016 to March 2017).

Instavat Team welcomes the Unified Tax, as it would replace a number of taxes, remove cascading effect, possibly reduce Effective rate of tax, possibly ensure consistent tax treatment across goods and pave the way for effective tax compliance.

It being a tax on a business transaction of supply of goods and services, it will have an impact on doing of business, tax and other administrative costs as also its operations very many ways including, in particular:

  • mode and manner of doing business;
  • revenue models & business models;
  • value chain and distribution chain management;
  • its processes and procedures;
  • cost and pricing;
  • tax costs and compliance;
  • accounting software, other software used in business, ERPs and the entire IT infrastructure.

Team, Instavat feels that the Taxpayers and the Businesses should actively participate in the journey of the unified tax, to:

  • impart business perspective and understanding in respect of the transaction and the levy,
  • ensure its simplicity,
  • facilitate the desired purpose and collection of revenue,
  • enable compliance with the law and its requirements and so on.

Team, Instavat to facilitate the efforts, wishes to communicate important aspects of GST (as outlined in various reports and/or Model Draft and/or other communications by the Governments) for:

  • It's understanding
  • Effects and impacts of the same on the business, costs, processes and procedures and the like
  • Evolving the desired principles, processes and procedures, in respect of the tax.

We earnestly urge upon the Taxpayers to: spare some time, assess the impact & effects, and facilitate the unified tax, make suggestions and representations to the Governments for the desired results and effective compliance.

SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  |  SALES TAX  |  VAT  |  ENTRY TAX  |  EXCISE  |  ENTERTAINMENT TAX  |  LUXURY TAX  |  INDIRECT TAX  | 

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