It is
apprehended that delay in GST is certainly going to have impact on the
mathematics of the Budget for the Financial Year 2017-18. It is most certain
that GST will get deferred for one quarter at least. In this scenario, old laws
shall prevail for first 3 months and GST for next nine months. The government
has to work on the Part B of the budget on the basis of the revenue collection
expected under both laws. Accordingly amendments would be brought in the
present tax structure. It is most likely that service tax rate might be
increased to 16-17% in lieu of GST rate being decided at 18% for levy on
services.
Although
delay in the biggest tax reform might sour the flavor of many professionals,
the business community is certainly going to welcome the delay. It will give
them time to understand the new law and rules. 3 months would be enough time
for them to implement the change in their business policies and accounting
packages.
If GST
further gets postponed from July 1, 2017 and does not get implemented, it shall
be the biggest political failure of the BJP Government. People are already
facing the brunt of demonetization and if again government fails to bring this
tax reform, they should start packing their bags for 2019 general election. It
is certain that people would not want such government to come back who even
after getting such a special majority is unable bring the required
transformation. Real test for the Modi Government has begun.
by:
Keshav R Garg
(B.Com, FCA, CS,
ISA (ICAI))
Faculty for GST:
Indirect Tax Committee of ICAI
Author: Bharat's
GST Ready Reckoner
A Handbook on GST
Adviser for GST:
Industries Association of Chandigarh
Member: Indirect
Tax Committee of CII, PHDCCI, MyGst.MyTax Foundation
Address: 3328,
Sector 27 D, Chandigarh, India - 160 019
Phones:
+91-172-461-3328, +91-98880-90008
Mails: mygst.mytax@gmail.com, keshavgarg@kdai.in
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