Experts are hailing GST as one of India's greatest indirect tax reforms ever, but, at the same time, they are wary about some of the changes that the one tax to rule them all regime could bring to the nation.
By making it a destination-based system, the tax incidence is brought closer to the consumer, resulting in better cash flows and capital management. Gupta also says that he is not unhappy with the higher level of tax compliance and says that the higher number of tax returns won't bother him as GST would be beneficial in the long run.
Discontinuation of such dealers shall cause a vacuum in the market aggravating crisis of medicines mostly at the suburbs and rural areas, said Joydeep Sarkar, general secretary, All India Chemists & Distributors Federation (AICDF).
Union Urban Development Minister M Venkaiah Naidu on Monday exhorted the political parties to "rise above politics" and extend their full support to the Goods and Services Tax (GST).
Act, the notified entities are required to collect TDS (Tax Deducted at Source) at 1 per cent on payments to suppliers to goods or services in excess of Rs 2.5 lakh. Even if a housing society's monthly maintenance charge is less than Rs 5,000 per flat, if its membership base is large and the annual collection is in excess of Rs 20 lakh, it would be liable to pay GST. And government thinks that under Goods and Services Tax, the credit input for construction cost of the materials will be passed on as benefit to buyers. People are looking for the receipt in which there is the corresponding reduction in the prices.
Bhagat further said earlier Patel had assured them that efforts were on to resolve the issue with the GST Council.
GST Council chose to implement the GST only after including the laws, rules, and rates, etc. Arun Jaitley, the Finance Minister, is the head of the panel while the other finance ministers of each state are the members. And this majority means centre and minimum 20 states. The GST Council until its 15th meeting had announced that it would not tax textiles.
Naidu's appeal has come amid reports of the Opposition's alleged decision to skip the special session being organised on June 30 ahead of the designated launch of the GST. However, petroleum products and alcohol have been excluded from the purview of the GST and the States will have the power to impose Value-Added Tax on it. Not to mention, the cost of buying a new mobile phone is also set to go up post GST.