The CBEC chairman is still figuring out the ways in which the GST will disrupt and change the taxation norms but one thing is pretty sure according to him that the taxes will increase a bit from the current rate. CBEC chairman Najib shah mentioned that “That is our belief (that the current level of taxation will not lessen at least for first five years. It will be the same, that’s our belief, and it will increase a bit.”
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The head also stated that various products and services are currently in the process to be adjusted to the slab rate of 5 percent ranging to 28 percent at maximum. And apart from this, the cess will be an added burden to suffice the states in the scenario of compensation for the first five years of the implementation as to keep in check that the states don’t turn up. He said that “The Council will determine the commodities which will have the cess. We will suggest, but all decisions will be taken by the Council because, after all, it is a question of revenue for the states and the Centre.”
The revenue secretary also informed that the council has taken the decision to steep rise the taxes of CGST (central GST) and SGST (State GST) from 14 percent to 20 percent which will take the taxation at the peak rate of 40 percent in overall. For the other general news on GST, he assured that the GST will arrive more likely in July with laws finalized till April for additional time granted to the traders for them get prepared. He also mentioned that there will not be any chance for the tax evasion as the GST will be IT oriented and the trader’s community will be in the surveillance.
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When asked about the preparation until now he mentioned that “That should give everybody time to adjust to the new requirements. We have trained 49,000 officers of the states and the Centre till last week. Goods and Services Tax Network (GSTN) — GST’s IT infrastructure arm — and CBEC together will now conduct training, so that people know how to file their returns, Outreach programs from April 1 are going to be massive. We are targeting all major towns. We will first create a group of master trainers and then ask them to train the trade and industry.”
“Existing VAT dealers, central excise assessees, and service tax assessees are approximately over six million. The total number of assessees (under GST) will be lesser than that as there is some overlap. Instead of filing three returns, they would be filing one return now. When the final migration takes place, then only we will know the exact number of assessees, It’s a new law, all the states and the Centre are moving to a new taxation regime. So there are going to be challenging because not only the trade and industry but the administration also has to change. All existing legacy issues may continue for some time.” he added
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