Cue from gstn on when to kick off gst

Cue from gstn on when to kick off gst

The Goods and Services Tax Network (GSTN) is reportedly unable to get the electronic way bill, meant to track intra-state and inter-state movement of goods, as rules have not yet been finalised. Rules must be clear for an e-way bill to be generated on the portal of GSTN, the nodal body to which all producers and suppliers of goods and services will file their tax payments.
Till then, the current system of border checkposts will continue. A unique e-way bill number will be made available to the supplier, the recipient and the transporter, hopefully, by the year-end. If GSTN needs rules to be finalised to get going on its work, so would accounting software-makers. The government should not be in a hurry to adopt GST on July 1. The tax must be rolled out at least three months after the finalisation and publication of the rules. A messy start is avoidable. Reportedly, the GST Council has so far cleared seven rules pertaining to registration, payment, refund, invoice debit, credit note, input tax credit, valuation, and composition scheme — essential prerequisites for the industry to gear up for the transition to GST.
Two rules on transition provisions and returns have been sent for legal vetting. Also, rates for commodities such as bullion need to be finalised. A dozen state legislatures have passed the state GST law. But all states must ratify the law to enable a smooth transition to the new tax regime.
Concerns over the lack of preparedness of small and medium enterprises to transit to GST are not entirely misplaced. Businesses will also face inventory, logistics, budgeting and working capital issues as they move to the new regime.
Interactive sessions with state and central government officials make sense. And better preparedness calls for a deferment of the roll out of the actual tax to September 1.