SKP Group
SKP GST Update
16 May 2017
Updates on GST rollout

Indications in favour of rolling out GST by 1 July 2017 
  • The government, along with large industry players, is keen on rolling out GST by 1 July 2017 in order to avoid hassle during the peak festive season, which includes Navratri and Diwali.
  • The festive season will lead to a surge in the demand for products like gold, garments, automobiles, etc. The fireworks industry will also be affected by a September launch.
  • As per the senior government officers, 1 July 2017 is a realistic date as there is only a small section which wants to delay the roll out. 
Concerns which are likely to postpone the rollout to 1 September 2017
  • Although large players may be ready for a 1 July rollout, their vendors and other small industry players will face infrastructural difficulties if the roll out is not postponed to 1 September 2017.
  • The ERP systems have not come out with GST packages, given that the rules at a draft stage have been issued recently and the rates have not been announced yet.
  • There are reports of the Goods and Services Tax Network (GSTN) trials not achieving the expected targeted. 
Set-up of Digital Kiosks as GST Suvidha Providers (GSPs)
  • Common Service Centres (CSCs), or Digital Kiosks are being set up to facilitate the rollout of GST in rural and semi-urban areas.
  • These centres will help the merchants to file tax returns and also provide training and support services to them. Such services offered by the centres will not be free.
  • Digitals kiosks and CSCs will act as GSPs which can directly connect to the Application Programming Interface (APIs) of the GSTN and facilitate hassle free compliance procedure. 
Other Aspects
  • As per the reports, the Centre and states seem to have worked out the GST tax rates for at least 6000 commodities.
  • The Revenue Secretary held a detailed review of the IT preparedness for GST rollout from 1 July 2017.
  • Hands on training on application software on the live system is being imparted to the tax officials.
  • The Chief Minister of Gujarat has claimed that the state is GST ready with over 0.5 million taxpayers already enrolled with the GST portal.
 
SKP's comments
  • Considering the repeated assertions of the Finance Minister and senior government authorities, GST is likely to roll out by 1 July 2017. However, postponement due to infrastructural shortcomings cannot be ruled out.
  • Confirmations of the draft rules and the announcement of the rates in the upcoming Council meeting to be held in Srinagar on 18 and 19 May 2017 are eagerly awaited.
SKP
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This update contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This update should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this update is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

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