A talk on GST by Shri Jayant Sinha, Minister of State, Civil Aviation At Tip Top Plaza, Thane. 14th July, 2017
- GST call centers for support in every place
- 8 central and 9 state taxes have been merged into GST. Indirect taxes
- GST is a destination tax
- Tax credit chain structure is formed
- Alignment of invoices, invoice matching will bring about transparency
- Complete Digitization of Process
- Comparable to Aadhar meant for individuals
- Consolidation of supply chain. Will make the system more efficient
- Optimization of logistics, of manufacturing and warehousing. Reduction in cost structures. Will make the country competitive
- State check posts have been eliminated. From 10 to 30 % reduction in transport time
- More than 300 crores invoices per month will be uploaded on the GST system. Big Data. No other comparable data volume in the world.
- Policy making will improve with all this Big Data available.
- Fool proof compliance will lead to improvements in tax collection. Tax to GDP ratio is presently 16-17%. China is at 21%.
- Increase in tax collection will help improve infrastructure, education, Heath care, defence.
- 21 lac crores is the annual expenditure of Central goverment. Revenue is 15.5 lac crores. Expenses are higher than revenue.
- With GST fiscal deficit will reduce.
- Changes in constitutional structure carried out. It is a victory of Indian democracy. It couldn’t have been possible in other federal democracies such as US, Australia, Canada.
- Similar to political integration that was carried out by Sardar Vallabhbhai Patel. GST has brought about economic integration.
- Brought about a change in which business is conducted in the country.
Question & Answers
- Input tax credit needs to be incorporated in the costing
- Refund on tax credit will be refunded in 7 days, once filings start from September
- HSN code is a global classification. In case there is a need for correction, HSN mapping will be dynamically updated.
- Every GSTN account will be rated on compliance.
- Ministry of finance has prepared an app for HSN code.
- ICAI has a youtube channel on GST