The nation is preparing for the execution of the Goods and Services Tax from July, yet the information of the GST is not yet known. The tax authorities have been taking a gander at the arrangements of the GST, and states have been considering it also, expanding delays. In any case, a senior designated person from the finance department in Delhi said today that the model law could be finished before the month end of February. Currently, the tax department is screening the model GST and the SGST, after which an official conclusion will be taken by the GST council on February 18. In case if everything works out positively, the model GST law could then be postponed in the Parliament during the Budget Session beginning March 9 2017. This would incorporate both SGST and IGST.
The route forward
When the model GST law is finished and put forward in the Parliament, states should pass an SGST which will be taxable on the movement of goods within the states. The Parliament will likewise need to favor a GST Compensation Act which will assist states with gaining back the income they may lose in taxes by executing SGST for the initial five years.
A four-level structure for taxes has just been chosen by the GST Council, with taxes determined at 5 percent, 12 percent, 18 percent, and 28 percent. Nonetheless, the toll for different goods and services ought to be finished by May or June.
How does this affect organizations?
Here’s a top to bottom report on the different taxes under GST, which will assist you with understanding the GST system better.
Under the GST model, 3 taxes will be actualized to help tax-payers to claim Input Tax Credit (ITC) therefore guaranteeing “One country one tax”. While the intra-state movement of goods will be charged under the SGST (State GST) and the CGST (Central GST), the inter-state movement of goods will be taxed under the IGST. IGST will likewise affect imports.
It is normal that this three-tier tax structure will make it simpler for states to lead organizations, as starting now and into the foreseeable future they will just need to deal with Centre for taxes and not with each other state engaged in the transactions. Vendors and organizations that have Pan-India India presence will find this new indirect tax structure i.e., GST a positive step.