The much anticipated GST rollout is defined to take place through the Financial Year 2017-18, cutting compliance and improving simplicity of doing business for millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities might be reduced while tax base is increased substantially. Within the new GST regime, all entities related to buying or selling goods or providing services or both need to obtain GST registration. Entities without GST registration would stop being allowed to collect GST from customer or claim input tax credit of GST paid. Further, GST registration is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is definitely supposed to cross the prescribed turnover.
The Prime Minister approved. The constitution amendment bill for Goods and Service Tax(GST) within the Parliament Session (Rajya Sabha on 3 August 2016 and Lok Sabha on 8 August 2016) along with the ratification by 50 % of state legislatures. Thus the present indirect taxes levied by state and centre are all set to become substituted with proposed implementation of GST
by April 2017. This may be the most significant tax reform since independence and a boon on the economy simply because it will eradicate the shortcomings of the current tax structure and give a single tax on way to obtain all services and goods.
Benefits associated with GST :
Eliminating cascading effect of taxes.
Tax rates will be comparatively lower as the tax base will widen.
Seamless flow of Input tax credit.
Prices of the products or services will fall.
Efficient supply change management.
Promote shit from unorganised sector to organised sector.