The much anticipated GST rollout is set to take place throughout the Financial Year 2017-18, cutting compliance and improving comfort of conducting business for an incredible number of small businesses in India. By abolishing and subsuming multiple taxes in to a single system, tax complexities can be reduced while tax base is increased substantially. Within the new GST regime, all entities related to selling or buying goods or providing services or both have to obtain GST registration. Entities without GST registration would stop being permitted to collect GST from customer or claim input tax credit of GST paid. Further, GST registration is mandatory once an entity crosses the minimum threshold turnover of starts a new business which is supposed to cross the prescribed turnover.
The Prime Minister approved. The constitution amendment bill for Goods and Service Tax(GST) within the Parliament Session (Rajya Sabha on 3 August 2016 and Lok Sabha on 8 August 2016) in addition to the ratification by fifty percent of state legislatures. Thus the current indirect taxes levied by state and centre are all set being replaced with proposed implementation of GST Retuns Filings
by April 2017. This would be the main tax reform since independence and a boon to the economy simply because it will eradicate the shortcomings of the current tax structure and offer an individual tax on way to obtain all products or services.
Great things about GST :
Eliminating cascading effect of taxes.
Tax rates will probably be comparatively lower when the tax base will widen.
Seamless flow of Input tax credit.
Prices of the goods and services will fall.
Efficient supply change management.
Promote shit from unorganised sector to organised sector.