There is no denial to the fact that till now GST has been nothing less than a roller coaster ride for the government, businesses and the taxpayers. Since the time the new tax regime has been levied, there is a lot which has happened. Both the GST Council and the government need to be appreciated on the grounds that they’ve been very vigilant when it came to reviewing tax rates, presenting new features and tweaking GST rules in ordered to turn the aim of ‘One nation, one tax’ into a reality.
Continuous meetings of the Council along with the support of other institutions helped the taxpayers and people, in general, to understand what the new tax regime is all about. A substantial number of people have already got themselves registered under GST and a majority of excise, service tax and VAT taxpayers have successfully migrated to the GSTN portal.
This article will take you through the major incidents which took place since the implementation of the new tax regime.
- The government declared that all the details pertaining to the tax return filing for the month of July and August. In addition to this, the Council extended the timeline for final return filing and the taxpayers are only required to file GSTR 3B which is a concise form of self-assessed tax liabilities that also includes the consolidation of all details of input credit and outwards supply.
- In the 20th meeting of the GST Council, the officials took the unanimous decision to reduce the rate levied on the job work on the textile sector to 5 percent. Furthermore, the Council decided to lower the rates of tractor parts to 18 percent from the previously decided rate of 28 percent. Moreover, the Council gave the in-principle a green signal to the e-way bill rules.
- The Council levied GST rules which propelled the companies to pass on the gains, arising out of the new tax regime including the input tax credit, to the final consumers. In the beginning, 150 items were chosen by them to start with. On the successful completion of these 150 items, more would be added at a later date.
- In the first review meeting of the GST Council since the implementation of the biggest tax reform in the country, they increased the fixed cess on cigarettes by a substantial amount of INR 485-792 per 1,000 sticks which varies depending on the size of the cigarette stick. This would be charged in addition to the ad valorem cess of 5 percent which still continues to be levied. The government deliberately kept cigarettes in the highest tax bracket of 38 percent and the cess is being levied over and above this levy.
The ever evolving nature of the GST regime has made it difficult for assesses to monitor its various aspects. As a result of this, they are being kept on their toes. Everyone needs to take a more dynamic approach pertaining to the new tax regime as the old way of responding to the upcoming changes can cause disruptions in the business world temporarily. Only those businesses which are willing to adjust with the ever-growing GST rules will be able to sail through.
Since the time the new tax regime has come into existence, the internet has been flooded with content and technological advancements pertaining to GST. Every business is looking for a GST compliant tool which will help them in accurate calculations. In addition to this, businesses also need the support of GST compensation fund cess being levied on luxury and sin tax goods.
In conclusion, a seamless integration of GSTN which supports notifications, signatures and validation is extremely vital for the healthy functioning of businesses.