Page 9 - MSME April-May 2017
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Special Article Decks Cleared for GST imposition; Roll out in July; GST refects the spirit of “One nation, one aspiration, one determination" – Neeraj Bajpai The cGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for both by the central Government. On the other hand, IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the central Government. The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature. Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both. f the Demonetisation of Big currency Bills of and capital goods on procurement which can later Rs. 1,000 and Rs. 500 and follow up crackdowns be set off against GST output liability. The reform Ion the Black money hoarders is the center piece gives equal footing to the big enterprises and SME of the Narendra Modi Government ever since it alike and removes the tax differentiation on stock catapulted to power at the center three years ago, transfer. Imposition of the much awaited The Goods and Service Tax from July 1, this year will herald a new Under the current system, VAT is levied era of Indirect Taxes regime. partially at state and central level and at multiple points which creates a ripple effect due to which It was for last two decades, the unified indirect the manufacturer has to shell out towards huge tax tax regime was on the tables of law makers and aggregates that is not sustainable in the long run. stake holders, but now the roll out of the GST is GST is aimed to simplify such tax hurdles and will on cards. Many await it with bated breath. The be ultimately borne by the customer. government is confident that it would spur growth. After riding roller coaster ride during its long GST is levied on supply of goods and services arduous journey, the GST bill was in the center of and it combines other taxes such as state/local political and economic debates, but during last tax, entertainment tax, excise duty, surcharges, few months, things turned fast. The GST council, octroi, etc. It will be applicable on transaction in its repeated meetings in span of last six months value which includes packaging, commission and thrashed out solutions for contentious contours, other expenses incurred during sales. It will scrap but now decks are cleared for its imposition. multiple central and state level taxes and levies Hectic preparations are underway to ensure that to pave way for easy doing business across the no legislative and administrative stumbling blocks country. come in the way in smooth working. Experts say it will bring uniform taxation across The Union Cabinet chaired by the Prime country and will allow full tax credit from inputs Minister Shri Narendra Modi on March 20, 2017 April-May, 2017 7
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