Strict provisions are made for the time bound filing of returns, which is also for the validity of tax paying invoices on which Input Tax Credit (ITC) is taken. The burden is cast upon the buyer availing ITC to ensure that the supplier discharges his tax liability, as per law any non-payment of tax, even marginal by the supplier will result into the denial of credit to the buyer. Invoice making provisions will require a special attention by the taxpayers. Every taxpayer will have to maintain a strict order of utilization of ITC in the form of CGST, SGST, IGST. Imports of goods and services are deemed to be interstate supplies and therefore will be subjected to IGST (replacing CVD & SAD) besides custom duty wherever applicable.
Mr Rushabh Shah, President, TAIT said, “India is a big unorganized market and it will be difficult to have a smooth working tax regime due to lack of available resources. Some of the businesses are asking for a delay in implementation of GST as they are not prepared and it’s too early for them to be planning for the stock, accounting systems, new laws and enactments. It is completely a new challenge for the organizations.“
GST will cover all B2B and B2C transactions and therefore the tax net will become wider.
GST will necessitate and relook at all the areas of the business including procurement, marketing, warehousing, logistics, transportation, IT operations, indirect tax and above all the finance. GST will have a serious impact on the cash flow of the company and is expected to result in an increasing need for the working capital to attract in the initial years.
Lastly, GST may deal a crippling blow to the parallel economy as every single transaction is expected to leave an audit trail. At the same time, GST may pose a serious threat to the SMEs, who may even face the survival challenge under GST.
Mr Samir Mehta, General Secretary, TAIT said, “Our workshops are always dedicated to the welfare of our members. We make a point to provide solutions to various issues or hurdles that our members face with their business operations by calling domain experts.”
