The GST is geared up for launching on July 1, 2017, according to the recent reports it has been came to notice that only 34% Service Tax Assesees have been enroled for GST.
The GST enrolment percentage for VAT and Central Excise has been reported to be 75% and 73% respectively, but the same has been reported to be 34% in case of Service Tax Assessees.
The Service tax Zonal offices has started advertisements on its website to erge the service tax assessees to enrol into GST immediately.
The input tax credit under the present tax laws can not be carried forward until an assesees enrols himself in the GST.
The all the concerned tax authorities have provided provisional id and passwords for GST enrolment on their respective websites.
The department has also asked the assessees to confirm that they are not going to migrate to GST by logging in to the respective websites of the concerned tax authorities so that the provisional id and password for GST enrolment would be cancelled and that the credit outstanding may be denied for availing in future.
The GST has fixed a threshold limit of Rs. 20 lakhs and hence some tax payers may not require to enrol in GST as they do not cross such limit.
The present tax laws of state and centre required the assessees having turnover more than 10 lakhs to get themselves registered in the respective tax laws.
As per the reports out of 80 lakhs VAT, Excise and Service Tax assessees, 54 lakhs have turnover below 20 lakhs, and hence they are not mandatorily required to get the GST enrolment.
However, if the dealer wants to claim the outstanding tax credit lying in the books of account, he can get himself enroled in the GST.
The Government is planing to put into effect Goods and Service Tax Act from July 1, 2017, once came into force, the GST will substitute 10 levies including Service Tax, Excise and VAT.
The GST Counsil committee will deliberate for three days starting from May 4, 2017 to fix the GST tax rates. One of the department official have confirmed that the rates of the GST will be final at the end of the meeting.
At the committee meeting the government will try to bring into force such provisions to exclude some items which are presently enjoying some tax exemptions under central excise and VAT.
It has expected that the services may be taxed at two rates of slab i.e 12% and 18% and the goods are to be taxed at five different rates i.e 5%, 12%, 18%, 28% and 28% plus cess.
More or less GSt will provide a simple and tax effective system, and their will not be any need of paying different taxes under different tax laws, the GST will be the only tax subsitute of multiple taxes and hence will reduce the cost of maintenance as well as tax amount.
Hence, the overall tax impact of GST will be positive for all.