GST to come into force from July 1 New taxation gates likely to come up
Source: The Sangai Express
Imphal, June 28 2017:
Even though the Goods and Service Tax (GST) would be enforced all over the country from July 1 with the slogan 'One Nation, One Tax', new taxation gates are likely to be opened .
According to information received from the State Government's Taxation Department, earlier there was no provision for opening tax gate in GST but there is a strong likelihood that new provisions for opening taxation gates may be incorporated on the ground that absence of taxation gates may imply loss of huge revenue .
When the Value Added Tax (VAT) was introduced, a number of taxation gates were opened which considerably slowed down speed of goods carriers .
Whereas goods carrier (trucks) can travel 600 to 700 Kms in a day in European countries, trucks can travel only 250 to 300 Kms in India on account of the presence of many taxation gates along highways.
Reduced speed implies consumption of additional time in transporting goods from one place to another and it can lead to price hike.
This is the general observation of Indian officials.
Based on this observation, taxation gates were left out from the purview of GST, informed the source .
Even though GST would come into force from July 1, formulation of rules for e-way bill has not been completed.
As such, taxation of goods would continue in the earlier form of VAT at least for sometime.
After the Central Government formulate e-way bill rules, States would formulate similar rules.
As such, proper implementation of GST would take sometime even though it would be officially launched on July 1, added the source.