The Government’s plan to roll out Goods and Services Tax (“GST”) from April 1, 2017, has moved ahead with the Hon’ble President Shri. Pranab Mukherjee signing the Government’s flagship Constitution (122ndAmendment) Bill, 2014 on GST (“GST Bill”).
The much-awaited GST now becomes a law with President’s assent after more than 16 States (BJP-ruled Assam being the first one) ratified it. Now, GST Bill will be enacted as the Constitution (101st Amendment) Act, 2016.
The passage of the bill will pave the way for setting up of a GST council that will decide the tax rate, cess and surcharges.
As preparations are afoot to roll out Goods and Services Tax (GST), also under active consideration is the re-christening of the Central Board of Excise and Customs (CBEC) as the Central Board of Indirect Taxes.
The GST, which will transform India's $2 trillion economy and 1.3 billion consumers into a single market for the first time. GST will replace an array of central and state indirect taxes like excise duty, service tax and VAT and will not only be a one uniform rate of taxes but it will also be single point taxation.
Considering that the GST shall have far reaching impact on almost all aspects of business, industry should quickly gear up and analyse GST impact on their businesses universe and look at this as an opportunity to re-assess their supply chains. Proactive planning with a time bound road map is the need of the hour.
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