After much hype, noise and lots of confusion and protests, GST or Goods and Services Tax- a single tax to replace multiple state and central taxes like VAT, Octroi, Cenvat, Service Tax etc has started on 1st July 2017 in India.
The Software systems and the Traders are still not totally ready. It will take time for things to settle in.
The transition would be a bit chaotic. People ranging from traders to consumers will have to bear some pains.
With some services like Insurance, Credit Cards outstanding increasing from 15% to 18% will pinch some, some other things like some essential goods turn a bit cheaper.
I am also trying to understand a few things and terms, as this stuff is creating a big bubble of excitement in me.
One thing I did observe in bills was 2 components-
CGST - Central GST
SGST- State GST
So a split is taking place.
And the GST is not on total price. So it means, the rest of amount is Input tax credit??
Well, I would also like more clarity on Input Tax credit.
Many traders are protesting as they will have to keep a record of each transaction and they will need to designate one person just for this task, or hire a CA.
I think the software could be designed in a simplified way to handle most of the things.
But in medium to long run, when things stabilize, it could be beneficial for all.
The Software systems and the Traders are still not totally ready. It will take time for things to settle in.
The transition would be a bit chaotic. People ranging from traders to consumers will have to bear some pains.
With some services like Insurance, Credit Cards outstanding increasing from 15% to 18% will pinch some, some other things like some essential goods turn a bit cheaper.
I am also trying to understand a few things and terms, as this stuff is creating a big bubble of excitement in me.
One thing I did observe in bills was 2 components-
CGST - Central GST
SGST- State GST
So a split is taking place.
And the GST is not on total price. So it means, the rest of amount is Input tax credit??
Well, I would also like more clarity on Input Tax credit.
Many traders are protesting as they will have to keep a record of each transaction and they will need to designate one person just for this task, or hire a CA.
I think the software could be designed in a simplified way to handle most of the things.
But in medium to long run, when things stabilize, it could be beneficial for all.
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