Implementation of GST is posing different hurdles every day before the government to surpass. However, one of the biggest hurdles was to pass the GST bill from Rajya Sabha which parliament did it after a long hold.
Currently, GST council is the supreme authority to take decisions over critical points under GST. The exemption and tax structure has already been approved by the council. The government is firing all cylinders to implement GST by 1st April, 2017 subject to the following implementation issues:
“Subscribe to the monthly magazine on GST.”
Hence, it is very important to have a secure, stable and up to date IT infrastructure to handle the very large amount of traffic from the day one. The IT infrastructure is handled by GSTN.
Goods and Services Tax Network (GSTN) is a Section 8 (under new companies Act, not for profit companies are governed under section 8), non-Government, private limited company. It was incorporated on March 28, 2013. The Government of India holds 24.5% equity in GSTN and all States of the Indian Union, including NCT of Delhi and Pondicherry, and the Empowered Committee of State Finance Ministers (EC), together hold another 24.5%.
Under GST regime, everything will be online. Hence, it is very important to have a strong online foundation, so that the system does not break down during heavy load.
Further, any change is not easily accepted by the staff, hence this might one of the biggest challenges that government is now facing. Further, it will take years to fully train the existing staff.
The challenges are immense before the government while implementing the GST and even thereafter. The management with untrained staff will not be an easy job. We will discuss these issues in the chapters ahead.
Conclusion – It’s only a beginning
GST is a mixture of all the existing indirect tax levies and shall uniformly rule the Indian taxation system. It was a historic moment for the Indian taxation system, when President Pranab Mukherjee assented the Constitution amendment bill. We have already discussed diversified topics on GST in brief as it was only an introduction. In this book, we will discuss every topic in depth with the easiest language possible.
A road ahead from here on will be challenging or maybe a race against time. Central GST, IGST and 29 State GST bill including rules and regulations need to be passed. The whole IT structure needs to be in place for a smooth implementation. However, government is very keen to implement GST w.e.f 1st April, 2017. Looking at the recent development, it is well expected that GST will fall in place on time.
The historic reform will have a far reaching impact on every individual, business etc of the country. Its impact can only be stipulated until and unless actual results are out. At last, we can say that we are fortunate enough to witness a moment where an old era is ending up giving its way for a new beginning. Hope we see a better India, a stronger India.