SMEs want GST implementation as soon as new govt formed Most of small and medium entrepreneurs (SMEs), with a ray of hope in their eyes, are expecting that the Goods and Service Tax (GST), the proposed tax reform that seeks to replace all the indirect taxes like central sales tax, state-level sales tax, excise duty, service tax and value-added tax (VAT) with a single and uniform tax rate across the country, will come to reality as the new government will be formed after the 2014 general elections. Efforts to implement GST stretched for over seven years and has missed several deadlines till now. It is an irony that any small or big manufacturer, who is sourcing his raw materials from one state and his clients too were mostly in the same state, when he moved raw materials from one sate to other, he had to pay 2 percent central sales tax (CST) on it. When he moved the finished product back into his state, he had to pay another 2 percent CST on it. The GST is a tax reform that seeks to create one common market for all goods and services in India. It has long been delayed due to differences between the centre and states over its design and issue of central sales tax compensation. The main point of concern for the states is compensation for the perceived loss of revenues because of the subsuming of several state taxes into the GST.
Posted on: Wed, 12 Mar 2014 03:57:36 +0000
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