3 Year Ago

GST to help to improve the Indian Economy

As you may be aware, the Goods and Services Tax (GST) is proposed to replace all indirect taxes like Service tax, Excise, etc expected starting 1st July, 2017. Introduction of GST would contribute significantly towards indirect tax reforms in India through Uniform indirect taxation system in India. 

One of the key features of GST law is widening of the ambit of eligible input tax credits by widening the definition of inputs, input services & capital goods; allowing credits on interstate transactions; subsuming levies like Entry Tax, Octroi etc.. As a step towards GST implementation, the Government has released an enrolment plan and launched the portal for migration of existing VAT registrations to GST Network (GSTN).

Another key feature of the GST regime is matching of credits. The suppliers and receivers have to upload their sales and purchase details respectively in specified return formats on GST Network (GSTN) and the credit of GST paid on inputs and input services shall be available to the receiver of such inputs and input services only if the details of transaction (Invoice Number, GST Registration Number Of Recipient, Taxable Value and Tax amount) uploaded by both the Seller/Supplier and Buyer/Receiver on GSTN match. Mismatches will result in reversal of credits along with interest.

To improve the efficiency, Government has also introduced a concept of e-way bill, which is expected to reduce delays at the state borders.

For ensuring an uninterrupted and continuous chain of input tax credit, suppliers and recipients need to maintain strict discipline to ensure that there are no mismatches.

All compliances including availing input credit are expected to be automated through GSTN. Therefore, it is important that all sellers/service providers need to register and obtain GSTN ID and provide the same to your customers/buyers.

Following links provide useful information about GST.

Central Board of Excise and Customs  -  http://www.cbec.gov.in/htdocs-cbec/gst/index

GST Awareness Campaign by CBEC - https://gstawareness.cbec.gov.in/

Economic Times - http://economictimes.indiatimes.com/gst

Tally Solutions Blog - http://blogs.tallysolutions.com/

CAClubIndia - http://www.caclubindia.com/category/gst.asp

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