GST: The next steps required to make it a reality

By MS Mani

The passage of the Constitution Amendment Bill (CAB) enabling GST introduction on Wednesday has brought back the focus on the next steps that are required to make it a reality. What should the government and businesses do next to hasten the introduction of GST and enable a painless transition to the new regime?

What the government should do

1. Ensure that the CAB is approved by at least 50% of the states.

2. Obtain presidential assent once the above is accomplished.

3. Form GST Council within 2 months of that.

4. GST Council should decide on various aspects, including rates and dispute resolution, and come up with a draft GST legislation.

5. Central and state governments should pass respective GST legislation and announce go live date.

What businesses should do

1. Constitute cross functional teams to evaluate various aspects of GST.

2. Evaluate broad level impact on each function and put forth issues through advocacy forums.

3. Depending on the availability of further information on rates etc, prepare impact analysis.

4. Make changes to existing functions/policies, based on the analysis in order to derive benefits from GST and prepare for transition.

5. Be prepared for go live date and ensure adherence to new compliance framework.