Ashok Kumar Chopra

With less then 45 days remaining in July 1 , 2017 to come – the date where from ,GST ,the much awaited and biggest indirect tax reform in Indian since independence, is expected to go live, few undermentioned challenges are on the way :

  • GST Rates are some thing which the Industry eagerly waiting for as its business policies will be much affected by the GST rates of goods and services. Any delay from now on in finalization of goods and services tax rates may be pose new challenges for trade and industry. However if this be the case, GST roll out date will have to be pushed to either 1st Aug 2017 or 1st Sep 2017
  • HSN code for goods and SAC for Services have not yet been finalized.
  • From 8th November 2016 to 30 April 2017, About 60.5% of the existing registered dealers have migrated to GST network and that too was achieved in the span of 6 months. Remaining 39.5% dealers still remained who have to migrate within this remaining time period. Migration of registered persons in Central Excise and Service Tax is below 50% level. It is worth mentioning that Enrolment window for GST enrolment which was opened up to April 30th 2017 will be reopened for 15 days from 1st June 2017. How will the remaining registered persons migrate in GST in this short span of time, 1st July being GST roll out date, this is to be seen in the time to come.
  • GSTN portal, which is a going to be single interface in GST between dealers and the Tax authorities, needed to be checked and operationalized successfully from various aspects and that too much before GST roll out date.
  • The Central Government have CGST, IGST, UTGST and GST Compensation Acts ready but many states not yet passed SGST bills. Only 12 States have passed SGCT bills till 13th May 2017 . However this may not be as big problem for Center as that for those states not doing it fast because after 15th September 2017 such states will lose their power to charge and collect VAT, CST, ENTRY TAX and such other state level taxes which are going to subsumed in GST. Hence such states will pass it in their own revenue interest.
  • The number of GST Rules and their provisions need to be finalized quickly.
  • More intensified programs on GST awareness are must to educate trade and industry in order to create meaningful awareness on GST on ground level and amongst the small and medium enterprises.

Disclaimer :

The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information contained in the article and any action taken based thereon.

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June 2021