'GST' needs no new introduction. It is the biggest and most historic tax reform in the post independent India. Now, with the Finance Minister strongly emphasizing that GST is likely to be as per schedule, it can be assertively concluded that GST is just around the corner.
GST is ONE comprehensive levy on all goods and services in place of multiple indirect taxes being levied currently at varying stages of supply chain. GST supplants the current indirect tax regime whichis known for its multiplicity of taxes, restricted credit flow, copious legislations, varying threshold limits and umpteen instances of cascading thereby, hindering the growth and competitiveness andadding to the woes of businesses in India.
In order to satiate the unyielding need to facilitate 'Ease of Doing Business', attain higher growth in terms of GDP, making 'Make in India' a reality, encourage better tax compliance and to bring about transparency in tax administration, it is but natural for GST to gain the astounding momentum that it has in the last few months.
The dual GST which would be implemented in India is a destination-based value added tax, levied at all points in the supply chain with credit allowed for tax paid on purchases used in making the supply. It would apply to both goods and services in a comprehensive manner with exemptions restricted to bare minimum.
In line with becoming digital India GST is a step moving from an era of cumbersome paper-based compliance system to a tech-savvy paper less compliance and administration model.
The Goods and Service Tax Network ('GSTN') forms the IT backbone of the GST system. It is going to be shared IT platform for both central and state governments. The GST System is going to have a G2B portal implying the tax payers will have to access and interface with the GST systems directly. However, tax payers' convenience will be a key factor in success of GST regime. As a measure to achieve the same, the tax payers may interact with the GSTN through a third party service provider generically known as 'GST Suvidha Providers (GSP)'.