Month: August 2016

#GST Passed – Headway for streamlined taxation, a need long overdue

gst

After tumultuous political juggernauts, years-long pendency and judicious persuasion, the time-sensitive approval of a rather highly anticipated GST (Goods and Services Tax) has finally come to a surprisingly happy reality, subsequent to the upper house of Indian parliament (Rajya Sabha) having taken cognizance of the dire needs of the bill.

As self-explanatory as it seems, the GST passage affords semblance of ‘Joie De Vivre’ moments nationwide; specifically in political turfs, wherein the cleared GST symbolizes jollification of a rather stalled parliament, which sometimes turns itself as a house of witless outcry, squabbles and slur-mongering of a far-fetched political rivalry.

As a matter of fact, the passage of GST now poses to be India’s rapid headway towards manifestation of a rather streamlined taxation environ in light of the fact that country has long been over-pressurized  under cumulative burden of variant taxes implemented State-wise across the nation.

Consequently, it has given rise to inflexible scenario, too difficult to maintain compliance with, as businesses had to queue up to receive tax approval for boarder’s passage of their logistics being transported through fleet vehicles.

As of now a business company, on sufferance, undergoes accouterments of allied taxes such as:

  • Central Excise Duty
  • Additional Excise Duty
  • Service Tax
  • Additional Customs Duty (Countervailing Duty)
  • Special Additional Duty of Customs

…to be complied regardless of the time-consuming modus operandi of the processes involved.

Now with the implementation of GST, all the discrete tax bifurcations will be subsumed into one broad category, thereby abolishing the worrisome tax compliances for good, sigh of relief for Indian industries of variant business sizes. (Note: India has two distinctive tax categories: 1. Direct taxes 2. Indirect taxes). 

In addition, logistic transportation via boarder to boarder of state-destined areas will no longer be subjugated to the obduracy of compulsory monitoring by security personals at state’s boarder to vindicate if the goods bear appropriate tax compliance.

GST clearance is seen as linchpin factor in spearheading the economic growth trajectory of India, considering its path will no longer observe the mandatory tax compliances separately as taxation on goods and logistics will be unified across the nation, which is suggestive of the barometer to gauge the economic-sensitive market of India.