SHILLONG: The state of Meghalaya will be fully ready by mid- September to implement the Goods and Services Tax (GST) Act with full force.
Commissioner, of Taxes, Abhishek Bhagotia on Monday told The Shillong Times that as of now traders in the state and the country were still learning the details of the GST even as there were directions from the Centre that traders should not be harassed but helped in the implementation of the GST.
“Right now we are under transition period and we will be fully ready for the new tax regime by mid- September,” he said
He said that as people would file their IT returns in August, many people in the state were yet to be acclimatized with the entire system and as many people were not aware about the system of operating GST.
“In fact, some people give wrong names in their PAN card and later complains and all these errors are being rectified,” Bhagotia told The Shillong Times.
Responding to a query, the official said that more than 9000 people in the state had already registered for the GST and added that the Inspectors of the department were going to the to the shops to help and explain to them about the entire process of GST besides helping them improving their calculation mistakes.
When asked how the manipulations by shopkeepers in GST will be detected, the official said that all invoice system was already uploaded in the system right from the manufacturing stage of the product and hence people would not be able to survive for long if they indulge in any kind of manipulations under the new tax regime.
The Commissioner of Taxes further added that once the GST was implemented fully, any mistake in calculation on the part of the traders would invite maximum 18 per cent GST whereas any intentional calculation committed by the trader would attract 24 percent penalty.
On being asked about some shopkeepers in the state charging both the state and Central GST, the official said, “The GST is usually divided in two parts and one part of the GST goes to state’s share whereas other share goes to the Centre.”
The Introduction of GST was expected be a very significant step in the field of indirect tax reforms in India, he said
“By amalgamating a large number of Central and State taxes into a single tax and allowing set-off of prior-stage taxes, it would mitigate the ill effects of cascading and pave the way for a common national market.
“For the consumers, the biggest gain is expected to be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%. Introduction of GST would also make our products competitive in the domestic and international markets. Studies show that this would instantly spur economic growth,” the official said.
