Goods and Services Tax
GST will be a game changing reform for the Indian economy by creating a common Indian market and reducing the cascading effect of tax on the cost of goods and services. It will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system.
In order to prepare for the implementation of GST, companies need to understand GST policy development and its implications for scenario planning and transition roadmap preparation.
Salient features of the propsed Indian GST System
- The power to make laws in respect of supplies in the course of inter-state trade or commerce will be vested only in the Union Government. States will have the right to levy GST on intra-state transactions, including on services.
- The Centre will levy IGST on inter-state supply of goods and services. Import of goods will be subject to basic customs duty and IGST.
- GST is defined as any tax on supply of goods and services other than on alcohol for human consumption.
- Central taxes such as Central Excise duty, Additional Excise duty, Service tax, Additional Custom duty and Special Additional duty as well as state-level taxes such as VAT or sales tax, Central Sales tax, Entertainment tax, Entry tax, Purchase tax, Luxury tax and Octroi will subsume in GST.
- Administration of GST will be the responsibility of the GST Council, which will be the apex policy making body for GST. Members of GST Council comprise Central and State ministers in charge of the finance portfolio.
Benefits of GST
GST has been envisaged as an efficient tax system, neutral in its application and distributionally attractive. The advantages of GST are:
- Wider tax base, necessary for lowering tax rates and eliminating classification disputes
- Elimination of multiplicity of taxes and their cascading effects
- Rationalization of tax structure and simplification of compliance procedures
- Harmonization of center and state tax administrations, which would reduce duplication and compliance costs
- Automation of compliance procedures to reduce errors and increase efficiency.
'T.FAT ERP X5 GST Ready Version' will include
- CGST,SGST and Integrated GST Rates for all industries for as per the recommendation of the GST Council.
- GST Forms including but not limited to Returns, Rules, Registrations, Challans, Refunds, Invoices, etc..
- Tax summary and Reports as per GST compliance.
- All data synchronization from any T.FAT Software version to T.FAT ERP X5 GST Ready Version.
- All data synchronization from your current software like Tally, Udyog, Focus, Busy, Marg, etc. to 'TFAT ERP X5 : GST Ready version'..