Revenue Secretary Hasmukh Adhia said that the main aim of implementing GST Regime is to move the nation into a single or dual rate of goods and services regime rather than several complicated taxes.
Adhia said during a panel discussion on Doordarshan News, “Ideally like all other advanced countries, we should have got one GST which is levied by one government only, and not a dual GST and also a GST in which there is a uniform rate. In our country, where there are different strata of society to be looked after, it’s not possible to have an ideal GST. We are in a good direction. We will prefer to have a single GST rate but after some time. That should be the ultimate goal — instead of having too many complicated rates, at least one or two rates should be there.”
The Goods and Service Tax (GST) Council has announced four slab rates for both goods and services i.e. 5, 12, 18 and 28 percent. However essential items will fall under the category of zero percent whereas bullion (gold or silver) will impose 3 percent GST. Additional cess will levy on luxury and sin goods, those are placed in high slab rate of GST in order to compensate the state revenue loss.
Industries or entities have been complaining that information technology platform (GSTN) is yet not ready for the implementation of new indirect taxation structure. Initially, the IT system is facing issues with forms.
Hasmukh Adhia said that the government is ready for implementing new regime. “We are fully prepared but we are hearing some sound that they are not, but we do hope that in the last 15 days — now that they have understood that the government is dead serious about implementing it from July 1 — they are also getting ready for it. Ultimately, in our country, when we force them to jump into it, people will start learning. So they will eventually gain the knowledge and start learning… We are helping them in a big way”.
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While asking about the opinion of the new regime, it will increase the tax burden and several entities don’t have the infrastructure. Under the new indirect taxation regime, you have to file only one return rather than multiple taxes and all filing process can be done through online, said Adhia
“Apart from VAT, excise duty, service tax and CST, where there are compliance requirements, there are many cesses that are not imposed by the revenue department but by other ministries. There are multiple forms and multiple returns to be filed today.”
Hasmukh Adhia also said business entities have to submit only one return in the new regime. They mentioned their invoice and sales details with the other two returns that can be generated automatically through IT system and also fetching the burden of second and third returns.
He said, “Absolutely. We are not asking anyone to go to any office, file paper returns and check them. There is nothing else to be done — it is all electronic.” By adding that, businesses will be done easily in the new regime.