ICAI welcomes the passing of the much awaited 122nd Constitution Amendment (GST) Bill, 2014 by the Rajya Sabha which would pave the way for implementation of Goods and Services Tax in India. It is the most significant tax reform since Independence, which subsumes a variety of federal and state taxes. The Bill would now be required to be passed by the Lok Sabha with the changes made in it and approval by 16 State Assemblies.
GST seeks to facilitate seamless transfer of goods and services across country and thereby creating a unified national market. It also seeks to reduce cascading effects of taxes and rationalize tax content in product price, enhance the ability of industry to compete globally. Prices of commonly used fast moving consumer products should reduce by at least 10%. This if passed on would benefit the ultimate consumer.
The Government is expecting increased revenues due to broad basing the taxation base through increased voluntary compliance. The industry is also expectant that the improved GST (incorporating the suggestions of industry, trade and professional bodies) will facilitate ease of doing business. In totality, GST would benefit India with increased FDO flows, increased revenue for the Government as a whole, Industry as well as the consumers in the long run thus creating a win-win situation for all.
Further, the Ministry of Finance has released Draft Model GST Law including IGST Model Law on 14th June, 2016 in the public domain for comments and suggestions. The Model GST Law provides an insight on the governing provisions regarding levy and collection of GST.
The implementation of GST is also expected to bring in new professional opportunities for Chartered Accountants to serve the community at large. Increased compliances requirement in the form of number of returns required, challenge in transition to the new regime etc. would definitely require a professional hand for adherence wherein Chartered Accountants can play a vital role. The provision for audit under section 42 (4) of the said Model GST Law akin to tax audit is a landmark opportunity for professionals to prove themselves as care takers of the financial health of the country.
