As the goods and services tax is approaching towards the nation’s economic heart, many economists and tax experts are believing that the transactional data would soar high after the implementation of goods and service tax in India and will demand the business units to comply with the newly embedded tax regime very attentively and also rigorously. The harsh times can surface after the implementation of GST as the business units will be having a tough time to cope up with the data maintenance.
L Badrinarayanan, Partner-Tax of law firm Lakshmikumaran & Sridharan India in an interview took the attention towards the gigantic and complex operational duty which would be arising in the coming days. In the interview, he said, “The transaction numbers that could go up to 4 billion a month have been unheard of in this country. Companies are hoping that the government does not come down hard on them and gives them time to adjust to the new regime.”
The Lakshmikumaran & Sridharan Attorneys is currently in association with goods and service tax networks which are going to be the IT base for the new tax scheme. However, the significant personality also told that presently the tax brackets of 5 percent, 12 percent, 18 percent and 28 percent are known to the market and industries as general, but the actual rate for every product will be disclosed after May or mid-June to avoid companies from doing any advance tax planning. Also, the issues regarding the liabilities of this financial year have also arose from the company segment as the same factor of secrecy over tax rate prevails.
The head also explained that “Rates are a concern which companies have and it is a complex area. For instance, they ask if they procure goods and services from unrecognized firms, what the classification of these services is. Also, they want to know how the IT systems will be automated to ensure that returns are filed properly and on time.” The tax experts are ready for the upcoming goods and services tax right now leaving the companies on a dilemma side.
The situations are already getting worse as the companies are struggling to get the proper feedback over the queries on goods and service tax. Various private companies have lent their hands to this scenario and have come up with various sorts of utilities like GST Helpline App and GST Registration Utility which are very helpful in getting some gist about the GST.
But as a tax expert is speculating, it said that “Our clients expect that in the near future, the exports will become competitive and time to market will reduce. We can have a centralized warehouse and there can be economies of scale.” Also, it says that the companies will have a better position and stability after one or two years at Max.
Till now, it is said that GST council is taking every step very diligently to avoid any misrepresentation. And the council is believed to solve out the product categorization issue in the pending meeting of May 18 by resolving the categorization of around 80 thousand different products currently circulating in the country.
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