India’s GST Council announced changes early this week that make movement to GST on July 1 likely, providing much needed clarity for business preparing for the change.
The announced measures include the following:
- State authorities will assess 90% of the GST registrants with annual turnover of Rs 1.5 Crores or less.
- The Centre will assess the remaining 10%.
- The Centre and the states will assess GST registrants with annual turnover above Rs 1.5 Crores in a 50:50 split.
- The power to levy and collect Integrated GST (IGST applicable to interstate supplies) resides with the Centre, with state being cross-empowered by a special provision of law. IGST disputes are to be resolved by the Centre.
Stories regarding India’s potential move to adopt a GST are by no means new and organizations may have historically viewed information emanating from the India Finance Ministry about replacing their existing tax mechanisms with a GST with a healthy degree of skepticism. This time is squarely different. India is serious about substantial reform.
Sovos Compliance continues to monitor these changes. Stay tuned for further insights and analysis in the days to come.
Read more about India’s move toward a GST.
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