18th April 2017
Goods and Service Tax is the part of trend nowadays. GST will roll out soon in the Month of July.GST is form of tax which will change indirect tax regime in India. GST will include almost all the forms of Indirect tax. GST will vary the tax slabs that are presently applicable. GST will have impact on the Private Sector. All the form of indirect tax such as excise duty, service tax and state tax such as sales tax, VAT, entertainment and purchase taxes, would be subsumed into one.
There has been report from KPMG and FISME( Federation of Small Medium Enterprises ) that while large companies are ready to move to the new tax structure. But small ones, especially those in the unorganised sector are not fully ready since they are battling against time.
Many Small entities are not ready for the rollout of GST. July 1 is the day that is the day for GST rollout. Small and mid-sized will have disruption in their businesses and payment cycles. This can even lead “some job losses” in the initial phase.
There has been helpline that has been organized by the FISME, along with Small Industries Development Bank of India (SIDBI), which will operational soon. This can help people to find solution for specific problems. Problems will be resolved in 48 hours.
GST can also lead to uncertainty that will postpone the exercise required to move towards adopting the new system.It can also lead to disruption in business cycle
The final tax structure is decided, due to this companies new prices cannot be fixed for their goods .Exercise needs to be hurriedly implemented
There has been report from the finance the GST can lead to teething problems after implementation.
All the forms of micro, small and big will be moving towards new and more advanced digital technology. Advanced Technology will them to facilitate audit reports, tax credits and payments among other things. In this many companies will have to make several entries and chalk out the entire chain of business transaction and process.
KPMG said that the Mandatory compliances, which company activities may require, and listing such action points would be critical. This needs to be undertaken after a thorough professional analysis.
People will have one national market. After GST implementation it is also expected to further boost economic growth by about 1.5 %.
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