GST laws set to become a reality as Rajya Sabha takes up the Bills today

The July March

GST laws are set to become a reality as the Rajya Sabha takes up the Bills today. Business Standard evaluates the preparedness of India Inc and states, and the possible implication of the new unified tax regime

Last-minute hiccups in way as GST roll-out deadline nears

After the passage of four crucial Bills related to the goods and services tax (GST) in the Lok Sabha last week, only a few issues remain to be addressed for introducing the new tax regime from July 1. However, these issues may turn out to be tricky for companies as well as other stakeholders.

Fiscal Federalism: The changing face of Centre-state fiscal ties

Over the course of the last few years, the Narendra Modi government has altered the federal architecture of the country.

The government initiated this change in 2015 by accepting the recommendations of the 14th Finance Commission, which increased the states’ share in the Union taxes by 10 per cent. The proposed roll-out of the goods and services tax (GST) from July 1 is another pivotal step in that direction. Taken together, these two changes will dramatically alter the role the Centre and the states will play to shape India’s fiscal and economic destiny.

How the GST Network works

GST Network, the IT infrastructure backbone that powers the new indirect tax system, is geared to accept up to three billion invoices a month from 8.5 million taxpayers from day one. 

The common portal (www.gst.gov.in) acts as an interface between different stakeholders in the GST ecosystem, namely taxpayers, tax departments, banks, the Reserve Bank of India, external service providers, among others.

GST: Are states ready for migration?

The long journey to rolling out India’s biggest tax reform, the goods and services tax (GST), is seemingly nearing an end, with the official deadline still July 1. The states had been anticipating that the scope for manoeuvre could at best be three months, and were gearing up for implementation. Whether a producing state or a consuming state, a BJP state, or a non-BJP state, the only difference that is material right now is the degree of preparedness.

Five things to know about GST

What is goods and services tax (GST)? 

It is a destination-based tax on consumption of goods and services. This means the tax would accrue to the taxing authority, which has the jurisdiction over the place of consumption — also termed as place of supply.

India Inc’s preparations for GST: Firms scramble to streamline operations

Less than three months left for the roll-out of the goods and services tax (GST) on July 1, a large number of businesses are scrambling to streamline their operations to make them compatible with the new unified tax regime.

While big companies across a range of sectors, including consumer goods, auto, e-commerce, retail, real estate and telecom, have already done some work to reorganise their structures and functions, small and medium enterprises (SMEs) are far behind the curve.

GST: Litigation and tax disputes concerns before new regime kicks in

“Dealing with legacy issues,” responded the chief financial officer of a large manufacturing conglomerate when asked to comment on his biggest concern about the goods and services tax (GST).

As corporate India gears up to be GST-ready, the ongoing litigation and tax dispute cases are something most businesses are cagey about.

GST will not have any immediate impact on FDI, say experts

The decks have been cleared for the roll-out of the goods and services tax (GST), but experts feel the reform measure is unlikely to result in an immediate increase in foreign direct investment (FDI).

Shankar Khasnis, chief operating officer of the Bengaluru-headquartered Feedback Business Consulting Services, said the GST was merely a beginning.

GST: How it panned out

Last week, the Lok Sabha passed four crucial Bills to introduce a country-wide GST, which would take India closer to being a one unified market. GST will create a common national market by replacing a string of central and local taxes such as excise, value-added tax, octroi, and service tax into a single unified levy.