India Good and Services Tax (GST) – Impact on Businesses

India is close to rolling out the largest reform to its indirect tax system in a quarter of a century. This reform, which sees the replacement of its existing VAT system with a more streamlined Goods and Services Tax (GST), is scheduled for implementation on July 1, 2017.

While the move to a more straightforward tax regime is welcome news to many, the proposed system differs in numerous and significant ways from the existing tax regime. Therefore, complying with the new GST system will require considerable changes within tax departments, who face challenges making the necessary changes in the abbreviated time available.

Our team in India has been closely tracking progress in this area, along with related data management challenges and any other GST-related issues that may result. This focus ensures Vertex will have the latest GST related rules and rates to accurately calculate the correct GST on both sales and purchase transactions.

In addition to the above, tax payers will be expected to upload and file returns using the Goods and Services Tax Network (GSTN) portal. The level of transaction detail expected to be submitted is substantial and represents a major compliance challenge for taxpayers. Vertex provides multiple options to extract transactional detail to support the upload process.

Learn more about Vertex's Support of India GST Changes.


Blog Posts

India GST Update: Tax Rates Drafted, July 1 Remains Implementation Target

The India GST Council released a draft tax rate schedule for more than 1,200 products and services that still may be subject to change until approved by the government. In early June, the GST Council will reconvene to hash out tax rates for more items. The rates that the GST recently shared "do not indicate a major deviation from the present tax rates, while also ensuring that GST should not pinch the consumer's pocket," according to The Economic Times...

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India GST Update: States, Rates and 60,000 Trainees

The country's adoption of a completely new, highly streamlined and much anticipated Goods and Services Tax (GST) features some compelling data points…

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India Sales Tax Overhaul Gains Approval from Lower House of Parliament

Legislative bills related to India's historic sales tax overhaul received approval from the country's Lower House of Parliament in late March…

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India's Indirect Tax Overhaul Progresses, Parliamentary Approval Edges Closer

On March 16, India's influential Goods and Services Tax (GST) Council approved the draft State GST (SGST) and Union Territory GST (UTGST) bills, completing its approval of all five bills related to the proposed new indirect tax system. The dually-controlled GST system would impose levies on a taxation base shared between India's...

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India Poised to Implement Historic Indirect Tax Overhaul

(BEPS) Actions progresses, regional overhauls are also speeding ahead. India is now one step closer to ... some power-sharing issues between federal and state officials, India's Goods and Services Tax (GST) ... (i.e., the federal level) and India's States. The new system would replace complex value-added tax (VAT)...

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The Bill-to Ship-to Model Under the Draft India GST Law

This infographic, based on an article by Vertex Senior Tax Analyst Ramnarayan Balakrishnan and published in Tax India Online, will walk you through various bill-to ship-to scenarios and their potential outcomes under the draft India GST law.

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Complexities of the "Bill to – Ship to" Model Under the Draft India GST Law

In this article published by Tax Management India, learn the complexities surrounding the process of determining a good's place of supply under the draft GST law, and who may bear responsibility for the GST when there is movement of goods.

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Post Supply Discounts Under India Draft GST Law

In this article published by Tax India Online, learn how the draft GST law could impact the way post supply discounts factor into GST calculation, and how that differs from post supply discounts in the VAT era.

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Additional Information

To learn more on how India's GST will impact your business and how Vertex is ready to support your organization, contact us at 1-800-355-3500.

Vertex Solution for VAT/GST Determination

Find out more about Vertex Indirect Tax O Series for VAT/GST determination.

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