India’s biggest tax reform is now a reality. A comprehensive dual Goods and Services Tax (GST) has replaced the complex multiple indirect tax structure from 1 July 2017.
The concept of GST was visualized for the first time in 1999. On 8 August 2016, the Constitutional Amendment Bill for roll out of GST was passed by the Parliament, followed by ratification of the bill by more than 15 states and enactment of the bill in early September.
The GST Council consisting of representatives from the Central as well as state Government, met on eighteen occasions in last ten months and cleared –
- GST laws,
- GST Rules,
- Tax rate structure including Compensation Cess,
- Classification of goods and services into different rate slabs,
- Exemptions,
- Thresholds,
- Tax administration
On 12 April 2017, the Central Government enacted four GST Bills:
- Central GST (CGST)
- Integrated GST (IGST)
- Union Territory GST (UTGST)
- Bill to Compensate States
In a short span of time, all the states (excluding Jammu and Kashmir) approved their State GST (SGST) laws. Union territories with legislature, i.e., Delhi & Puducherry, have adopted SGST Act and the balance 5 Union territories without legislatures have adopted UTGST Act.
The government has also notified GST rules, tax rates on goods and services, exemption list and categories of services on which reverse charge is applicable.
The second phase of enrolment process for migrating existing taxpayers to the proposed tax regime through GST common portal has already commenced from 1 June 2017. GST Network, an IT backbone of GST, has also carried out the test run of its Portal. GSTN has released offline utility for GSTR-1.
Return filing procedure for the first two months of GST implementation is relaxed. Tax would be payable for the first two months based on a simple return Form GSTR – 3B containing a summary of outward and inward supplies. This form is required to be submitted before the 20th of the succeeding month. However, invoice details in regular GSTR-1 would also have to be filed for the month of July and August 2017, as per the timelines given below:
|
Return for month |
GSTR – 1 |
GSTR – 2 |
GSTR 3 |
GSTR 3B |
|
Due date |
Due date |
Due date |
Due date |
|
|
July 2017 |
1—5 September |
6—10 September |
15 September |
*25 August |
|
August 2017 |
16—20 September |
21—25 September |
30 September |
20 September |
* Registered persons who are entitled to avail transitional input tax credit and opting to file Form GST TRAN-1 on or before 28 August, 2017 can file Form GSTR-3B on or before 28 August, 2017.
