‘GST will work best when benefit of credit margins are passed on to the end users’

Source: The Hitavada      Date: 28 Jun 2017 10:01:34


 

Business Bureau,

“Under the current tax regime, we face problems like double taxation, high compliance costs and lack a comprehensive credit mechanism. GST will have fewer rates and exemptions and will reduce the multiplicity of taxes. Going forward, we only need to pay dual GST or IGST,” said CA Varun Vijaywargi during the Vidarbha Management Association’s session on ‘Are you GST Ready?.’


Explaining the levies, processes and parameters under GST and the eligibility criteria and benefits of Input Tax Credit, Vijaywargi highlighted several salient changed under the new regime- henceforth, MRP based valuation will be done away with, forms and input side rebate will be discontinued, bills will be generated electronically and anti-profiteering measures will be set in motion.

He was of the opinion that while benefits of easy credit availability and rate uniformity are many, GST isn’t perfected yet and will work best when the benefits of credit margins are passed onto the end consumers. He suggested the management of working capital, IT, tax environment and compliance ratings as important measures in GST preparation. “There is no turning back now. Businesses are already affected in anticipation. Come 1st July, we can only hope that GST gets implemented smoothly with the right understanding, application and assessment impact,” he said.
The session was moderated by CA Garima Gupta and documented by Shubhankar Mishra for VMA archives.