The official launch of Goods and Services Tax (GST) will be on June 30th midnight. The GST will reduce tax burden on goods by replacing the indirect taxes like VAT, Service tax, Excise etc levied by the central and state governments. GST seeks to bundle state and central levies into one and create a seamless national market throughout the country.
The GST Council (GSTC), the apex decision body for the new tax, also approved the creation of an anti-profiteering authority that will exist for two years. According to the source, the norms for filing returns have been relaxed for the first two months until September 2017. This will help Small business and traders who may not be ready for migration to GST.
The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Budget for 2007-08. There would be four tax rates namely 5%, 12%, 18% and 28%. The Council has asked the Committee of officers to fit various goods and services in these four slabs keeping in view the present incidence of tax. GST would be applicable on “supply” of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services.
According to the source, the GST returns would be applicable for business where turnover is more than Rs 20 lakh. Hence the small business and traders with turnover less than Rs 20 lakh will not have to file any return. Under GST, you need not give any details of invoices but disclose the total turnover.
A mega rehearsal has been planned tomorrow in the Central Hall of Parliament ahead of the historic GST launch on the midnight of 30 June. Tomorrow’s rehearsal has been organized to ensure that everything is well-organized and there is smooth conduct of the launch event, the sources said. The final event is likely to start at 11 PM on 30 June and will be on till half past midnight the sources said.
- Businesses having a turnover of more than Rs 20 Lakhs have to get registered mandatorily under GST.
- The norms for filing returns have been relaxed for the first two months until September 2017.
- There would be four tax rates namely 5%, 12%, 18% and 28%.
- Under GST, you need not give any details of invoices but disclose only the total turnover.
- GST allow sellers to claim the tax already paid, so that the final liability on the end consumer is decreased.
- From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods.