Hurdles in Implementation of GST, Implementation Hurdles For GST. With the GST Council constituted, now comes the hard part fixing the rates of tax, deciding the precise nature of Central GST Act, the Integrated GST Act and the State GST Act, the tax exemptions, threshold limit, payment of compensation for revenue losses to State Govt, figuring out how to settle disputes and how to prevent taxpayers having to interact with multiple levels of govt. in order to comply with the tax.
Hurdles in Implementation of GST, Implementation Hurdles For GST
Powers of Council for GST Legislation: The Council singularly is clothed with legislative, executive and judicial powers. It will recommend GST legislation, oversee implementation of GST in Country and set up mechanism to adjudicate disputes between its members. It should ensure regularly inviting trade bodies, professional associations, academics and consumer forums to submit their views on issues deliberated by it; participating in information, education and communication programmes in association with State and Central govts; setting up an interactive and continuously updated website in all languages.
IGST in interstate trades: Govt. should ensure that States are authorized to administer GST on supplies in course of inter-state trade and commerce.
IT Infrastructure: One of the key factors for introduction of GST is a robust IT backbone connecting the State Govts, trade and industry, banks and other stakeholders on a real time basis. For this purpose, Govt. formed a Special Purpose Vehicle (SPV) called Goods and Services Tax Network (GSTN), which has the mammoth task of developing the GST portal. The contract for developing this interface was awarded to Infosys that reportedly is almost ready with the interface. Though there is some peripheral knowledge of how stakeholders will engage in a dialogue with this portal, more awareness is required for companies to understand the compliance requirements, which are anticipated to be more stringent with electronic credit matching. This is expected to pose a bigger challenge for medium and small companies. India’s second largest software company, Infosys, has been assigned the mandate to develop and run GSTN in a project worth Rs. 1,380 crore. IT companies have a tough job to do since IT processes for every company will have to be customized. Companies are mainly upgrading their ERP (Enterprise Resource Planning), a category of business management software, so as to accommodate complexities of calculating GST. It is a gradual process and changes in ERP will need to factor various other parameters including procurement, warehousing and impact on vendors and customers
It’s for first time, when Govt, is prepared but industry is not; it is like handful of companies are ready for GST, others are waking up a night before the main exam.
Dispute Resolution System: One of common grievances taxpayers have in India relates to delays in dispute resolution system. Fixing the good dispute resolution system holds the key to easing the cost of doing business and will also help in attracting more foreign and domestic investment. The aspects include: when does a disagreement between department and taxpayers take the form of ‘dispute’ in a legal sense; once the dispute arises, how does one resolve it expeditiously with a degree of finality; when dispute involve principles of assessment, how does one ensure that such decisions taken are uniformly applied all over Country.
Preparing & training Industry: Not only will GST impact the business but the entire supply chain, necessitating significant changes to the entire ecosystem. CEOs will need to be engaged through implementation journey to reorient business structures and reorient costs, rather than tax organization alone. Induction and orientation programmes for the company’s personnel highlighting the key changes ushered in by GST vis-à-vis the present indirect tax laws, key business impact areas, compliance procedures and way forward.
- List of Taxes Included in GST, Taxes to be subsumed under GST Structure
- Benefits of GST in India, GST Benefits to Consumers & Businesses
- Transitional Provisions for Migration of Existing Taxpayers to GST
- GST All Sections, List of all sections of GST
- GST Introductions, What is GST, GST Enrollment Procedure 2017
- Key Changes in the Revised Model GST Law (Nov 2016)
- Important Definitions Under Model GST Law, Decoding of Definitions
- ITC Under GST, Input Tax Credit Under GST, Eligibility & Utilisation of ITC
- E-Commerce Operator & Tax Collection at Source (TCS) Under GST
- Supply Under GST, Composition Levy, Tax Deduction at Source (TDS)
- Time and Place of Supply under Revised Model GST Law
- GST Registration Procedure, Enroll Schedule, Check List GST Enrollment
- GST Transition Provisions, Transitional Challenges under GST Regime
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