GST Introduction

The most awaited tax reforms in the country.It will impact every sphere of business activity. From Procurement, Supply Chain, IT, Logistics, Pricing, Margins, Working Capital, etc. Current Tax Structure may no longer be relevant in the new GST Regime.
Here, our point of interest is Indirect Taxes, because GST will replace all Indirect Taxes with few exceptions.

What is GST and its features?

It is a Indirect Tax levied on Goods and Services.
It is a multi-stage consumption tax levied on the supply of Goods and Service by the Central and State Government.
It will replace all major Indirect Taxes levied by the Central and State Government.
All transactions and processes only through electronic mode.
Input Tax Credit available on taxes paid on all procurements.
PAN based registration.
Registration only if Turnover more than Rs.20 Lacs.
Credit available to recipient only if invoice is matched (helps fight huge evasion of taxes).
Tax can be deposited by Internet Banking (NEFT, RTGS, Debit/Credit Card and over the counter).
Cross utilization of IGST Credit first as IGST and then as CGST or SGST/UTGST.