Goods and Services Tax

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,...