India proposes to introduce a dual system of Goods and Services Tax (GST), with taxes imposed at both Federal and State levels and a further distinction between GST on goods and GST on services. It is expected that the move to GST will create a simplified and integrated system of indirect taxation. The introduction of a dual GST will be, in effect, an integration and rationalisation of the existing regimes at both Federal and State levels. It is however fundamentally different from the present regime in a variety of ways.
India finally seems to be on the cusp of implementing the much-awaited tax reform of the GST. With the release of the draft Model GST Law on 14 June 2016, we crossed a major milestone and moved a step closer to GST.
Based on information available in the public domain, there is a high probability of the government garnering the required support for the passage of the GST Constitutional Amendment Bill in the Parliament.
Given the above, businesses (especially those with large operations) realize that they need considerable time to prepare for GST and have started gearing up for the same.
PwC’s ‘whole of business’ approach: Globally, PwC follows a comprehensive approach for GST impact assessment and implementation, where tax and business advisory teams work together to provide seamless service to clients that covers all necessary business aspects.