Goods and Service Tax (GST) is all set to subsume as many as 60 existing indirect taxes, cess, surcharges and duties levied by the Union and state governments. The entire tax regime would be made online and PAN-based. There would also be a new software and hardware in the Commercial tax department of Madhya Pradesh for the purpose, said Commissioner of Commercial Tax Department Raghvendra Singh while talking to this correspondent.
Singh also tried to clear doubts regarding the new tax regime. Here are excerpts of his interview.
Do you think GST would be a unique system?
Yes, GST would be a unique system and about 80 lakh businessmen would be associated with it. The entire system would be made online. Registration would be done state-wise and PAN would be the basis of GST.
Within four days, a businessman will get registration. In coming days, the government may set up a help desk for businessmen to address their queries. E-commerce will also come under the domain of GST. Suppliers and operators will have to get registered with the GST.
How many taxes will be included in GST?
At least 50 to 60 indirect taxes, cess and surcharges will be included and the basic paradigm of State GST of states would be the same.
Does it hamper interest of the state?
No, GST won’t hamper interest of the state as it will help consuming states like MP.
There is a common fear that there would be price hike after implementation of GST?
Government is quite aware that price hike likely after introduction of the GST. But rates would be kept in such a manner that it won’t spur price rise.
As the entire indirect tax regime is changing, do you think software will also change?
Definitely, there will be new software for the GST. For the purpose, a company GST Network (GST-N) is being constituted. It will look after issues like registration, returns, payments and refunds. Issues like assessments, scrutiny and audits are being put on the back-end. So the GST-N would give us option to prepare back-end software. Initially we thought to do so, but suddenly we realised that GST-N has given option that it would prepare software for back-end purposes also. Thus we decided to go with the option given by the GST-N.
Q To follow GST, is it necessary to change existing hardware’s of C-T Dept?
We have assessed our requirements. It has been decided that desk tops of 2008 would be replaced with the new one. Along with GST, our IT infrastructure would also be made up-to-date. What is the structure of GST-Network?
This would be a non-profit making company with a unique kind of equity sharing. In GST-N, the Central and state governments would have 24.5% each equity. The remaining 51% would be held by financial institutions like LIC Housing, HDFC, and ICICI.