Deutsche Bank predicts GST implementation to be Apr 2018

The government could find it hard to implement the GST, scheduled to be rolled out from April 2017.

The Dollar Business Bureau 

The government could find it hard to implement the GST, scheduled to be rolled out from April 2017, a report in the Deutsche Bank revealed. 

Although the government has announced it would launch the tax regime from April next year, as the global financial services major predicted, it isn’t clear if the government will be able to set up all the technological and administrative set-up required to make the regime up and running. In its research note the bank stated, “Getting all the states ready to implement a nation-wide GST may therefore take more time than what is currently anticipated.”

Listing out the obstacles that could slow down the launching of the GST, the report said some small-scale companies are lesser prepared than big companies to adapt to the change. Furthermore, some states could also express their concerns in the GST rollout before the deadline. All 20 Indian states need to ratify the bill; only then can the GST council be able to design its framework.

"In our view, the GST should be implemented from April 2018, which will give adequate time to various stakeholders (central and various state governments, corporate and small scale enterprises, tax authorities etc) to get ready for transitioning into the new regime,” it added. “This includes arriving at a consensus on the GST rate structure and revenue neutral rate (RNR) rate. After the Council's work, the relevant Bills will be brought back to the Parliament's winter session (November-December) for final approval,” it said.

Earlier, Revenue Secretary Hasmukh Adhia had said that the Centre is confident of implementing the GST regime from April 1, 2017.

"As of now, we are optimistic of achieving the target of April 1, 2017. We have already made a plan for training of 60,000 officials, which has already begun. 5,000 officers are already trained. The IT backbone will be ready for testing by January 2017," he remarked.

The Dollar Business Bureau - Aug 08, 2016 12:00 IST
 
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