India GST Implementation – An Update

borders-2099205_1280After 11 long years, GST has finally become a reality in India. Implementing GST provides an opportunity to remove (or at least mitigate) the weaknesses that both the Centre and States faced with the existing indirect tax structure.

With GST, the cascading of tax will almost be eliminated and compliance costs will be minimised — first by reducing the multiplicity of taxes and then by bringing in technology for taxpayers and taxmen to interact. Transportation and logistics costs will also be drastically reduced, and inter-State check posts will be removed, thereby providing a country-wide Common Economic Market. Finally, GST is a destination-based consumption tax that will pave the way for industry development through improved infrastructure, road networks, and power stations expected to be built with the extra revenue that will go to the States. Continue reading “India GST Implementation – An Update”

GST – Long-Awaited Step in India’s Economic Reforms

borders-2099205_1280After 11 long years, the journey to introduce a Goods and Services Tax (GST) in India is now nearly complete. The Dual GST Model will see the Central Government, 31 State Governments and 5 Union Territories levy and collect GST concurrently on a common tax base. The final hurdle was passed on 29 March when the lower house of the Union Parliament, Lok Sabha, approved the follow-up implementation related to the CGST Act, UTGST Act and IGST Act. Additionally, the act relating to compensation by the Centre to the States for possible revenue loss due to GST has also been passed. Continue reading “GST – Long-Awaited Step in India’s Economic Reforms”

GST in India: An Update

In August 2016, the Indian Constitution was amended to empower both the center and the states to levy and collect goods and services tax (GST). The GST Council is a constitutional body created to steer the GST implementation; it is made up of Finance Ministers from the center and the states, and it is chaired by the Union Finance Minister. The GST Council recently announced that GST will be rolled out on 1 July 2017. Continue reading “GST in India: An Update”

Partho Shome, ITIC Board Member, leads Indian Tax Administration Reform Commission

On 26 January 2016, several leading Indian newspapers reported on a speech by Minister of Finance Arun Jaitley at the Platinum Jubilee celebration of the Income Tax Appellate Tribunal (ITAT).

Referring to the report of the Tax Administration Reform Commission (TARC) chaired by Dr. Parthasarathi Shome, Minister Jaitley said, “The Shome Committee report…has suggested reforms in tax administration…(it) has given several recommendations that we are at a very advanced stage of looking into.” There was widespread media speculation that the Finance Minister would address TARC recommendations in the forthcoming Union (national) Budget on 28 February. Continue reading “Partho Shome, ITIC Board Member, leads Indian Tax Administration Reform Commission”