GST CHALLENGES AHEAD

At this moment, it is almost certain that the Goods and Service Tax (GST) will become a reality in India w.e.f. 1st July, 2017. This is going to be a major reform of Indian Tax Structure in Indirect Taxes. Its effect on economy, common public at large, businessmen, manufacturers, service providers and other stake holders will be far reaching. An attempt has been made here to evaluate some important provisions of the proposed GST, its impact on various sectors and challenges before all of them in this journey. The Model GST Law has made a very important and dynamic provision vide Section 163 for Anti-Profiteering Measures. The benefit of reduction in prices has to be finally transferred to end customers. In view of these anti profiteering provisions, every supplier is required to analyse the probable reduction in cost which can be passed on to the customers. Simultaneously, the supplier has to be vigilant enough to get similar reduction from his suppliers.