Descriptive Test : THE GST BILL
The proposed Goods and Services Tax expected to be rolled out from the first of July is a landmark in the indirect tax regime in India.It is a tax applicable to manufacture, sale and consumption of goods and services throughout India (except the State of Jammu and Kashmir) with an aim to replace several of the indirect taxes levied by the Central and State Governments.The complexity of keeping this as a federal contract with Constitutional sanction should not be allowed to break while getting each State to pass the state GST laws in the next three months.This reform has been in the limelight for the past 17 years or so.The streamlining of the supply chain system with little chance for evasion of tax is expected to simplify ease of doing business and also to act as a mechanism to minimize corruption.An indirect tax like the GST is ultimately passed on to the end consumer as part of the price of goods or service.An indirect tax is shifted from one tax payer to another.
The GST Bill was introduced as a money Bill in the Lok Sabha as (one hundred and First Amendment) Act 2016 and it received the assent of the President of India on the twelfth of April,2017. At the distributor end of the supply chain, the GST is not perceived to encounter any real problem as already they have been a part of the VAT regime. Wholesale is a pivotal channel in the overall distribution chain in India where some problems may be anticipated at the implementation stage of the GST regime. That the political and the administrative hurdles have so far been safely crossed over, points to the meticulous and methodical implementation of the new tax is only a step away.
33 years experience as CPSU Officer