Goods and Service Tax (GST) which is planned to roll out on 1st July 17 by Indian Government, clamber to finalize its technology. The aim of Indian Government is to generate as many as 3.5 billion invoices each month with this technology.
The implementation of GST is expected to give a remarkable hike to the low taxpayers based in India, especially due to systematic corruption and the massive size of informal and unorganized sectors. Through GST portal, chairman of GST Network (GSTN) Navin Kumar said that new taxpayers will register new tax system and existing taxpayers will migrate to file return; and in the back end it will be connected to upgraded tax department. However, of all the countries implementing GST, Indian GST is the most complex one as the available guidance was only draft law. This good intention of implementing GST might lead to chaos as India’s small unit and service industries will not comply easily with the new system. Moreover, the GSTN rules are not fully prepared.
Goods and Service Tax (GST), an indirect system of taxation formed by merging around 17 existing taxation, will be the common interface for federal and state governments, taxpayers, tax authorities and banks said Navin Kumar. He further said that they will be ready by July. However, as Sachin Menon, the partner and head of indirect taxes at KPMG India claimed that half of the people will fail to comply the new system as they won’t be ready for GST. Further, “One nation – one tax – is only a myth” says M. Veerappa Moily, a law maker of the opposition Congress, seeing the half-prepared software of the GST Network (GSTN). He said that it will be a ‘Technological Nightmare’ for business and will lead this country in an area of tax distortion and anarchy.
Defending such sceptic warnings, Kumar suggested a beta launch from May to check loopholes and strengthen the GSTN software and technology. Despite all the challenges and difficulties faced in implementing the GST in India, Kumar is determined not to delay the ideal step towards production and promotion of free flow of trade.