The GST was integrated with a big event organized in the central hall of Parliament at the midnight of June 30, 2017 and came up into effect from July 1, 2017.
Kicking off occasion to note down on two years of the GST implementation, the finance ministry on Monday put together further more reforms in the indirect tax system with the introduction of new return system, rationalisation of cash ledger system and a single refund-disbursing mechanism, amongst others.
Minister of State for Finance and Corporate Affairs Anurag Thakur will certainly preside over the event alongside key secretaries and officials of different departments, the finance ministry stated in a announcement on Sunday.
The introduction of GST was a game changer for the Indian economy as it have replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax plan, it stated.
The ministry mentioned it will introduce the newer return system on a trial time from July 1 and on compulsory basis from October 1.
“Sahaj & Sugam returns for small taxpayers are proposed,” it asserted.
Regarding single cash ledger, the government would rationalise the ledger in this manner that earlier 20 heads are combined into 5 major heads, it added in.
There is certainly a single cash ledger for tax, interest, penalty, fee and others.
A sole refund-disbursing mechanism arrive into play in which the government which sanctions refund disburses all 4 major heads of refunds namely CGST, SGST, IGST and cess, the ministry stated.
“Threshold limit of Rs.40 lakh is offered of suppliers of goods as per the choice of states. Introduction of composition scheme for small service providers up to an annual turnover of Rs.50 lakh with a tax rate of 6%, electronic invoicing system in a phase-wise manner for B2B transactions is proposed to be introduced and GST Appellate Tribunals are being established at various state headquarters and area benches also,” it mentioned.
The goods and services tax (GST) was executed by a big event organized in the central hall of Parliament at the midnight of June 30, 2017 and came into effect from July 1, 2017.
The government stated GST has integrated India into an individual common market by breaking obstacles to inter-state trade and commerce.
By cutting out cascading of taxes and minimizing transaction costs, it would enrich ease of doing business and present an impetus to ‘Make in India’ campaign.
Over the course of the past 2 years, the government introduced different changes in the GST system mutually with regards to quantum of taxes and also inclusion and exclusion of items (goods and services).
At the occasion, a book on ‘GST for MSME’ can certainly be released.
The Central Board of Indirect Taxes and Customs’ officers who may have put in hard work in the execution of GST will likely be awarded ‘GST Commendation Certificates’ by Thakur, release asserted.
Beginning a radical and universal reform in an economic system as large as India will surely witness teething problems and perhaps GST actually did. 2 yrs after it was implemented, the query is whether GST is transferring towards the promise of improving tax collections and getting rid of bottlenecks to trade.
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