After a long wait and repeated requests by the Indian Government, the Rajya Sabha finally gave a green signal to the historic Goods and Services Tax (GST) Bill, which is considered to be a significant reform that will simplify and unify the tax structure of India. The much-awaited GST, which will be implemented from April 1, 2017, is expected to impact the IT-BPM sector (and also other industries), which is currently valued at USD 143 billion (2015-16). The GST, once implemented, will supposedly bring all states and people of India under one tax regime and reduce time for calculating tax for different states and expedite movement of goods and services.
IT experts believe that the GST Bill will bring some ease of doing business and address various challenges in the current indirect tax landscape. Large enterprises are also going to benefit from the GST is numerous ways. While the rate of GST is yet to be decided, industry observers have assumed an 18 per cent rate recommended by a government panel in making their impact calculations. (Click here to read full article)