Mumbai: IT industry has a lot of expectations from GST, which is set to come in force from April 2017. However, there is a need for more clarity on the proposed indirect taxation structure and its impact on the businesses. With an objective to provide insides of GST to its members, Mumbai based Association of System Integrators and Resellers (ASIRT) recently organized a tech Day on GST.
Deepak Mata, Assistant Director at NACEN, Mumbai (National Academy of Customs, Excise & Narcotics), provided in depth knowledge on the GST implementation. Mata unveiled GST right from concepts and implementation including purpose, short term and long term effects. He also touched upon how the system is going to work after the implementation of indirect tax regime. Mata spoke on topics like Time of Supply; IGST and Place of Supply; Meaning and scope of supply in GST; Payment mechanism in GST; Valuation concept in GST regime etc.
“It was not only an informative session but also exciting eye opener on the way Government is thinking and how should 200 odd ASIRT members conduct their business in the best possible manner of compliance and ease”, said Kshitiz Kotak, chairman of ASIRT.
A Council of federal and state governments announced the four main tax slabs of 5 percent, 12 percent, 18 percent and 28 percent under the proposed Goods and Services Tax (GST). The council has proposed 12 percent to 18 percent tax slabs for consumer durables and electronics, whereas, white goods will be taxed at the rate of 28 percent. However, there is no immediate clarity on the classification of electronics under the proposed tax slabs. IT channel partners have sought more clarity of the GST implementation and hoped that the new tax regime would positively impact the industry.
The event was sponsored by Vodafone and IDFC bank. Vodafone highlighted how IT service providers can use their nationwide high speed network to offer solutions like vehicle tracking system and similar as well as demonstrated how partners will certainly retain their customers for MPLS leased lines when working with others and how their opportunities registered on Vodafone portal will solve the problem of lead cannibalisation. IDFC bank setup a smart card station for AADHAR cards of members as they also spoke of additional and prioritized banking facilities they can offer ASIRT members including credit extension.