Indore Partners to clear stocks before GST

Goods and Services Tax (GST) is an indirect taxation in India merging most of the existing into single system of taxation. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016, following the passage of Constitution 122nd Amendment Bill. The GST is governed by GST Council and its Chairman is Union Finance Minister of India - Arun Jaitley.

GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India (Except state of Jammu and Kashmir), to replace taxes levied by the central and state governments.

Introduction of Goods and Services Tax (GST) is a significant step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax would mitigate cascading or double taxation, facilitating a common national market. The simplicity of the tax should lead to easier administration and enforcement. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%, free movement of goods from one state to another without stopping at state borders for hours for payment of state tax or entry tax and reduction in paperwork to a large extent.

GST is expected to be applicable from 1 July 2017

IT Dealers around the country are organizing various seminars and meeting to get the knowledge about what GST actually is and they are planning how to tackle it. Same is with the IT Dealers of Indore.

In interaction with The DQ Week Manish Goyal, President, Madhya Pradesh Computer Traders Association (MPCTA) said, “We are waiting for GST something is cleared and somethings is not, partners here are clearing their stocks before 30^th June to avoid wastage of current stock. The main reason behind this is, it is not yet decided how much percent Tax will it be either 18% or 20% so to avoid loss they are not purchasing new goods but clearing the old one”

This is one of the step IT Dealers taking to avoid any loss or to avoid any kind of confusion.