Good and Service Tax was introduced in the year 2017 dated July 1st, by our Honorable Prime Minister Shri Narendra Modi. We are close to reaching the second year of GST already. There is something that has to be considered now. Before that, let us analyze what GST is
What is GST?
Goods and Service Tax also called GST in an indirect tax that is imposed on the sale of goods and services. GST is levied at each step during production and refunded to all parties in the chain of production apart from the consumer. [Get Personalized Advice For GST –Visit]
Goods and service Tax is divided into five tax slabs for collecting tax- 0%, 5%, 12%, 18% and 28%.
GST has made the tax system much simpler now. Now, the government has to take steps to execute some more duties among which addressing these problems is also necessary.
Now that the system of the tax system has been made easier, now it’s time to take up these three issues during the second year of GST.
No difficulty has to be there in terms of consent. The tax filing system has to be facilitated and a smooth system has to be introduced. The GST council in May had announced that a new single return filing system will be introduced in six to twelve months. [Get Personalized Advice For Goods and Services Tax –Visit]
Concerns that are open to clarification arise out of numerous tax rates and exemptions. Fewer classifications have to be ensured such as rate nationalization of 12% and 18% into a 16% rate. This could lead to fewer interpretations and confusions.
3. Legal Landscape:
Despite the availability of GST, no tribunal exists to address the issues that arise out of the indirect tax. Though Authority for Advance Rulings (AAR) is present to address issues, we need a dedicated tribunal for better decisions to make while looking at issues arising out of GST. AAR is an independent quasi-judicial body that comprises of a retired Judge of the Supreme Court and two members of the rank of Additional Secretary to the Government of India.
At present, under GST, the fraud isn’t transitional so manipulation of input credit can be done. Therefore, the easier the filing system becomes, the better it is. GST permits one to offset the already paid tax on raw materials from the final tax that is paid on the final product known as Input Tax Credit (ITC).
For more information visit www.moneymindz.com or give a missed call to 022-62116588
For More Information Visit: