The much awaited goods and services tax (GST) will be delayed by half a year, say sources familiar with the developments.
The Rajya Sabha had approved the bill in August, and it might just be a whole year before the bill is turned into an act. In an earlier IOS report, we noted that the government was planning an April rollout for the GST. However, experts had predicted a delay, and rightly so.
N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy is somewhat apprehensive about the implementation. He says,
“Since April 1 looks difficult, the government has little option but to bring in GST from any month next year. Since it is a transaction tax, it can be brought in at any time. However, the challenge will be to do a revenue forecast in the budget. It will be prone to huge errors.”
The GST will include the tax collected at source (TCS). The law says that companies will have to deduct the TCS before they pay their sellers and file the returns. Etailers are not happy with this, as they feel that it will only compound the taxes. This TCS will not include ‘aggregators’ like Ola and Uber. A separate notification will be provided to cover aggregators.
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