Executive Letter

The topic that is currently being discussed by everyone is the Goods and Service Tax (GST). After several years of hard work and deliberations, this new taxation system has finally been introduced w.e.f. 1 July, 2017. The overhaul has been referred to as, ‘One Tax, One Nation, One Market’.

 

The implementation of GST has received praise as well as criticism. Various eminent personalities have given their opinions to the Government on the things that have been done right and the things that could have been done differently. It is important for businesses to invest time in understanding the actual changes in the billing process, filing process, etc. that have been taken place due to GST. All businesses will have to switch over to the new system and prepare their employees as well.

 

GST implementation is expected to make transactions more transparent and eliminate double taxation. Three online returns will have to be filed every month. However, the Government has provided relaxation for the first two months as companies may file simplified, aggregated returns for July and August by 20th of the following month.

 

It remains to be seen whether small business will be able to adapt to the GST system in time. A successful GST implementation would help fuel the growth of the organised sector.

 

Rupa Srivastava,
Director,
The PDP Group. 

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