The implementation of Goods and Services Tax (GST) will bring about lot many changes in Indian economy and make manufacturers, traders and sellers life easy.
This single tax system will be more transparent and uniform than the earlier system. The Goods and Services Tax(GST) is a value added tax that will replace all the indirect taxes levied on goods and services by the Government, both Central and States, once it is implemented. For a turnover above Rs 20 lakh per annum GST registration would be mandatory.
It was informed at a one day workshop organised here on Thursday by PHD Chamber of Commerce and Industry, on Goods And Services Tax (GST). The workshop was addressed by Chief Commissioner, Custom Central Excise and Service Tax Bhopal, Hemant A Bhat; Assistant Commissioner, Department of Commercial Tax Madhya Pradesh, Indore, Preeti Johari, Assistant Commissioner Anurag Jain, and Tax Consultant RS Goyal.
Regional Director, PHD Chamber of Commerce, RG Dwivedi in his welcome address underlined the importance of GST and termed it a ground-breaking reform for the Indian economy's indirect tax regime.
Hemant Bhat talked about Central and State GST and how this will be levied. He clarified that the base of the GST would be supply of goods and services and this will be more transparent and uniform tax system, which is much needed.
Tax consultant RS Goyal said GST is a beautiful merger of various taxes in a one single tax. It will be equally distributed among all the concerned parties therefore the burden on a single trader will be less.
VAT tax will be continued on selected items like liquor and some petroleum products. He also informed that below
Rs 1.5 crore turnover State tax officers will handle the assessmenet that would be continued for three years. With the implementation of GST E-Way bills will be mandatory for goods worth Rs 50,000 and above. This E-Way bill would be generated by the transporter or the supplier within 24 hours of the transport of goods.
Preeti Johari discussed components of supply of goods and said an advance receipt of tax invoice would now be required for the tax payers. She also informed about GSTR 1, 2 and 3 and its modalities.
Anurag Jain spoke on input tax credit. He said GST is system supported and will remove hurdles in smooth transportation which would save oil cost worth Rs 1.60 lakh crore wasted on tolls due to present system.