Thursday, March 15, 2012

Challenges in implementing GST

The proposed model of CGST and SGST with multiple tax rates will not be simple to implement.
Determining of Input Credit benefits between goods and services is difficult.

In certain states taxes like VAT is yet to properly administer and introduction of GST can be over burdening them.
 Apart from the above the government has to address challenges posed by the states andto arrive at a consensus in the Empowered Committee of States Finance Ministers. Due to lack of public information it is difficult to assess the finer benefits and disadvantages of new system.

Contributor - Vineet