With the launch of the GST during special night session of Parliament, India a country of 1.3 billion people and $2 trillion economy has embarked on the era with new tax reforms that will redefine the way business and taxes are conducted.
Prime Minister quotes the Goods and Service Tax (GST) as “a good and simple tax”. “With GST, the dream of one India, great India, will come true, GST is a simple, transparent system which prevents generation of black money and curbs corruption” who is on journey to transform Indian economy towards greater heights with continous reforms after last year demonetization crippling the back marketers completely.
Most of the opposition parties were absent during this special session with Congress, TMC, DMK avoiding the special session. While President Pranav Mukherjee, Vice President Hamid Ansari were there to support the nation towards this major reform.
Businesses are the most effected with this complete new tax ruling which has four different slabs rather than one that was original proposed. Even the computer who will be used for filling income tax need to upgrade according to the adjustment has further added into the chaos of GST launching.
Some facts that are under huge scrutiny after 1st July 2017 with the implementation of GST in India
- In 29 states there were around 500 different taxes that varied over multiple business standards and unnecessary paperwork that will go away with new GST system.
- All the taxes like excise tax, central sales tax, Octroi, entertainment tax, VAT, entry tax, luxury taxes etc are being put into one system i.e. GST
- All GST users have discretion of using their own Invoice format with specific fields must for this law considerably.
- Time period with Goods is anytime before the delivery while for services within 30 days from the supply respectively.
- There are four tax slabs in current GST system unlike one single tax rate in other countries ranging from minimum 3 to 28 percent maximum depending on the nature of the business simultaneously.
- One can also consolidated invoice for full whole day with smaller amounts let’s say ₹ 100 to unregistered customers for multiple times can be shown in one final invoice at the end of the day.
- GST Council is the apex leading decision making body which has set all the rates being headed by Union Finance Minister with state finance ministers.
- GST rule book that the authorities have prepared has more than 200 pages with rules being added till Friday questioning on the unpreparedness of the system itself.
- One of the key benefit is the GST Network is completely accessible online for any information 24×7 backed by IT infrastructure.
- Petrol and Diesel are under GST for now but in future they might be included.
- GST rollout will not be carried out in Jammu and Kashmir as they failed on the necessary legislation on Friday.
With GST, India is getting rid of their traditional and complex tax structure being used for centuries with the aim of globalisation with the aim of ‘One tax structure over whole nation’.