BENGALURU: Goods and Services Tax (GST) will be introduced by the Government of India to merge the current tax slabs into a single tax system. This step will totally reform the indirect taxation system in India. GST was proposed to implement from April 1, 2017 but the current situation shows there will be a significant delay in its implementation. However, this delay will also be somehow beneficial to our economy. The Economic Times explained about the impacts of missing the GST deadline.

The main reason behind the delay of GST implementations is the issues raised up by states. The state governments don’t want to settle anything less than 15% while the current proposed rate is 12%. Along with this they want exclusive right over the turnover of up to Rs1.5 crore. Central government wants to equally divide all assesses without any threshold. Therefore, GST council is planning to meet again on Dec 22nd and23rd to settle this issue.

Another problem is that the final decision on GST law is still to be confirmed. GST council has not yet discussed the draft law. Therefore there is no possibility of GST making into the current parliamentary session. The current condition shows that there is a possibility of presenting GST Law during budget session in the month of February. It makes April 1, 2017 to likely miss because if the law passes during budget session and there is no possibility of preparation and making rules within one month.

Currently the possible rollout date for GST will be September 16, 2017 otherwise states cannot levy any kind of taxes. GST law has its own impacts on economy which is facing complications from the demonetisation move by the government. This delay will help the economy to revive from demonetisation and government will get more time to review current taxes. Business and industries will also get enough time to prepare.

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