A quick guide to the new Goods and Services Tax (GST) in India

You would be already aware that a comprehensive indirect tax reform by the name of GST (Goods & Services Tax) is proposed to be introduced in India with effect from 1st July 2017. This tax reform is a fundamental change in the framework of indirect taxes and impacts not only the rates of tax but also various business processes and associated documentation.

After a decade of deliberations, the Govt. of India has come up with a very smart mechanism of tax collection and reporting, that will not only make the indirect tax system easy but will also prevent tax evasion.

What is GST?

GST is a comprehensive, multi-stage, destination based indirect tax levied on consumption of goods and services. It will provide a single uniform tax structure on manufacture, sale and consumption of goods and services throughout the entire country, replacing the multiplicity of taxes currently levied by the central and state governments.

In view of the wide spread apprehensions about this new tax paradigm, I thought it important to write this brief article about GST and how it affects us. I have included in this article a very relevant video of a GST workshop organized by the Department of Revenue, Govt. of India. Do take out 2 hours of time in peace to go though the entire video patiently without skipping any part. The video is largely in Hindi and the Revenue Secretary has very vividly described the various aspects of GST and how it will make doing business in India easy and transparent. It will also clarify all your doubts and apprehensions related to return filing for GST - which will now become a very easy process.