July 01, 2017 is the day for GST to roll out all over India. GST (Goods & Services Tax) bill has greatly evolved over the last few years and is considered to be the sole largest tax crusade since India got its independence. Many tax experts estimate it to boost the GDP up to 2%. With the introduction of GST, the slogan of ‘One India One Tax’ will come into existence and all the indirect taxes will vanish making the country a common market. GST coming into effect will not only abolish the cascading effect, but the advantages of easy acquiescence and a single process across the country will greatly contribute to ease of doing business, particularly for those working with Tally ERP 9 as the software’s latest version is fully compliant with GST and the businesses would need it to file their returns.
This specific tax is an all-inclusive tax imposed on the supply of services and goods across the nation. It was June 2016, when the draft model of GST law was initially made open and which the draft was revised and made open on Nov 26, 2016.
Over the past five to six decades the indirect taxation program in India has witnessed several transformations. The transparency in tax administration has increased over the years due to various initiatives taken by the government thus lessening trouble to tax payers, abolishing the cascading effect thus benefiting the end user. However, with the structure of the Indian system being federal the tax is administered by both the state and centre. A little bit of cascading effect is still left in the system due to the deficiency of facility to use credits across these two establishments. In addition, as there are multiple agencies involved, there is an increase burden of compliance. These concerns are precisely addressed by GST by driving regularity across the nation through a single tax and making sure that the credit flow is not restricted. Idealistically, one can say that GST is akin to VAT, which means tax will be charged whenever there’s value addition at every juncture in the supply chain.
GSTN or Goods and Service Tax Network is a non profit organization that’s incorporated under the partnership of private and public companies which includes state and central government and private companies. The main aim of GSTN is to roll out the IT backbone along with the portal for meeting all the e-filing needs of GST. This is considered to be the nodal agency which would control all the forms, processes along with the data of all the trade happening in the country.
All the businesses registered under GST would require to file returns mandatorily along with the essential quarterly or annual returns. This can be easily done with Tally ERP software as its latest version is integrated with GST. Even those businesses who were till date filing returns quarterly or half yearly must now file returns every month. The tax system under GST would now be quite simple with individuals and businesses can just comply by a single tax.
This specific tax is an all-inclusive tax imposed on the supply of services and goods across the nation. It was June 2016, when the draft model of GST law was initially made open and which the draft was revised and made open on Nov 26, 2016.
GST Background
Over the past five to six decades the indirect taxation program in India has witnessed several transformations. The transparency in tax administration has increased over the years due to various initiatives taken by the government thus lessening trouble to tax payers, abolishing the cascading effect thus benefiting the end user. However, with the structure of the Indian system being federal the tax is administered by both the state and centre. A little bit of cascading effect is still left in the system due to the deficiency of facility to use credits across these two establishments. In addition, as there are multiple agencies involved, there is an increase burden of compliance. These concerns are precisely addressed by GST by driving regularity across the nation through a single tax and making sure that the credit flow is not restricted. Idealistically, one can say that GST is akin to VAT, which means tax will be charged whenever there’s value addition at every juncture in the supply chain.
Infrastructure for IT
GSTN or Goods and Service Tax Network is a non profit organization that’s incorporated under the partnership of private and public companies which includes state and central government and private companies. The main aim of GSTN is to roll out the IT backbone along with the portal for meeting all the e-filing needs of GST. This is considered to be the nodal agency which would control all the forms, processes along with the data of all the trade happening in the country.
All the businesses registered under GST would require to file returns mandatorily along with the essential quarterly or annual returns. This can be easily done with Tally ERP software as its latest version is integrated with GST. Even those businesses who were till date filing returns quarterly or half yearly must now file returns every month. The tax system under GST would now be quite simple with individuals and businesses can just comply by a single tax.
