Several entities are in a race against time to become GST compliant as July 1 inches closer. From the government to banks, to small business owners to retailers, each entity is taking steps to have the necessary IT infrastructure in place to ensure there is a smooth roll-out of GST.
We will explain about the preparation levels of each entity in brief.
Even after several meetings, there are still lingering issues which GST Council is yet to resolve. These issues pertain to taxation of lotteries and not having requisite IT infrastructure in place for implementation of e-way bills (information relation to movement of goods across state lines).
The Centre is also setting up GST facilitation cells to provide support and resolve queries and concerns of industries. It also set up a Twitter handle (@askGST_Gol) which would answer GST related queries.
Banks have been caught flat footed as they will be required to comply with state wise registration under GST. The banks would have to register in each state where they operate. Banks are now changing their IT systems which was configured per centralized registration to state wise registration in a hurry.
Several retailers of consumer durables will suffer losses on stocks purchased before May as they will have to dole out discounts to consumers to clear up their pre-GST stocks. Retailers said that they would incur losses of 6% on stocks purchased before May and around 14% loss on stocks older than 1 year. Several white goods such as refrigerators, washing machines, TVs an ACs will have their prices slashed in a bid to clear off old stock.