GST at glance and the game changer

GST is a single biggest reform (since the liberalisation reforms of 1991) that can transform and revolutionise India's economy and tax regime. Analysts are saying that the sooner it is implemented, the better it is going to be for India's GDP. In fact, if media reports are to be taken as a fair estimate of its overall monetary impact on the nation as a whole, then the new well-designed and flawless indirect taxes regime could boost India's GDP by more than 2%. After a long drawn political battle, finally the constitutional amendment bill has moved one step forward paving the way for the GST to come into existence. The contentious issues of legislative capping of the GST rate, abolition of 1% inter-state tax to favour manufacturing states and a legislated dispute resolution mechanism have, for the time being, been settled mutually, at least to an extent, by the governments. Its passage marks the achievement of a key milestone in the long-delayed progress of the key reform, which the government wants to roll out on April 1 next year (i.e., 01/04/2017).

GST is a Tax on Supply of goods and / or services.

Hence, concept of Manufacturer, manufacturing process, Deemed Manufacturing, Sale, Deemed Sale and Service lender will repeal.

indirect Tax compliance become easy.

GST will also provide a boost/synergy to Make in India initiative of Prime Minister Narender Modi.

GST will also positively affect to the Indian Economy.

Imported goods will become cheaper due to Introduction of IGST on the Imported Goods, [IGST= CVD (Equivalent to Excise Duty) + SAD (Equivalent to VAT)], after the implementation of GST A Importer who has not a manufacturer or first stage dealer is entitled to take credit of IGST.

Indian Export will also become cheaper in international market due non cascading effect [i.e., Tax On Tax]

Indirect tax system become more transparent due to involvement of IT infrastructure in GST.

GST is really a game changer for indirect tax regime