India steps to GST implementation

Thu 15th Sep 2016

With the main India legislation now ratified for the implementation of a new Goods & Services Tax (GST), a number of steps must be undertaken before a roll out.

These include:

  • Establish a GST Council to review and conclude on launch details
  • Resolving the overlap between the new Central, State and Integrated taxes
  • Agree a country-wide rate for the new consumption tax. This is likely to be between 16% and 18%
  • Putting in place a dispute resolution and appeals processes
  • Determining details of pricing policies and tax calculations on inter-state transfers of goods
  • Confirm how input VAT credits will be matched to output VAT payments – a complex and controversial requirement for VAT reporting
  • Agree on implementation date – potentially sometime in 2017