Goods and Service Tax-A Long Journey Ahead

We know that the prevailing taxes in India are mainly divided into direct taxes and indirect taxes. The indirect taxes levied by central governments are service tax, excise duty, CST, Custom duty etc. and the state governments levying VAT, Entry Tax, Octroi and luxury taxes etc. From July 1st 2017 onwards, all these indirect taxes will be replaced by GST. After a long wait of 10 years, the goods and services tax (GST) is now a reality. Most of the work required for implementation of GST from July 1 has been completed. The GST Act was enacted. GST Laws are mainly consisting of 14 rules. The tax payers will be allotted a state wise pan or GSTIN (Goods and Service Taxpayer unique Identification Number). The people of India are going to be a part of the biggest tax reforms in the history of India. ‘One Nation, One Tax” is the slogan for GST. Through GST, we can mitigate the ill effects of cascading and pave the way for a common national market. We are expecting an increase in trade volumes and improved tax compliance due to widening of tax base. In this context, it is felt necessary to discuss about some challenges in this regard