Advice

What are the major issues in implementation of GST in India?

by Author

What are the major issues in implementation of GST in India?

There is also a logistical challenge to the implementation of GST. Till date, not all the 31 states have passed the State GST Acts. Some key states like West Bengal and Punjab are yet to pass the GST Bill and if the bills are not passed before July 01st, it could create a massive mismatch for trans-India trade.

Why is GST implemented what are the challenges of implementing GST?

Clubbing Taxes: The biggest challenge of GST implementation is bringing all the indirect taxes under one roof, which is the biggest feature of GST. Other states are reluctant about alcohol, tobacco products coming under GST. This is due to the fact that a major chunk of state revenue is derived from these products.

READ ALSO:   What does Confucianism conflict with?

What is GST explain the features and challenges of GST?

GST has a 4-tier tax structure of 5\%, 12\%, 18\%, and 28\%. All the goods and services can only be taxed as per this tax structure. Many of the essential commodities such as food items do not have any GST. Improved transparency and cheaper goods and services are two of the biggest advantages of this 4-tier structure.

How was GST implemented?

Implementation of GST finally materialised with the Parliament passing the Constitutional Amendment Act in September 2016, followed by the State Legislatures and GST was rolled out with effect from 1 July 2017 (including Jammu and Kashmir with effect from 8 July 2017).

What are the important stages of implementation of GST?

Putting in place a dispute resolution and appeals processes. Determining details of pricing policies and tax calculations on inter-state transfers of goods. Confirm how input VAT credits will be matched to output VAT payments – a complex and controversial requirement for VAT reporting.

READ ALSO:   What are three examples of companies that are using machine learning mention the specific applications of machine learning in these companies?

What type of GST is implemented in India?

There are Four GST types namely Integrated Goods and Services Tax (IGST), State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST), and Union Territory Goods and Services Tax (UTGST). The taxation rate under each of them is different.