Myths surrounding GST won't be tackled by the government
What's the story
Amid reports of the government taking stringent action against small and huge companies which are not passing on the benefits to their consumers or rising prices disproportionately, the government came out with a message that it won't force firms to decrease prices immediately.
It added that the competition within the market would guide the firms to give away the benefits of GST to consumers.
Firms take on GST
Companies to absorb GST over time
Consumer goods industries heads have already assured the government that GST would be incorporated into the system with time. Overnight changes cannot be made; the firms would gradually follow the norms and pass on major benefits to the consumers.
Stating this, a number of car companies, consumer goods manufacturers have already made price changes and more will follow suit.
GST's functioning
Government's overview of the functioning of GST
The government is of the view that GST rollout has been a smooth sailing as of now with businesses adjusting to the situation.
Registrations for the same are ongoing evenly.
2.23 lakh new businesses have filed draft applications for registration with the GST Network. Over 65 lakh businesses which had been registered for VAT, service tax and other taxes registered with the GST Network.
Reforms required
Tying of the loose ends of the GST
The proper implementation of GST will take time. The Finance Ministry will be notifying the date for collection and deduction of tax at source at a later date.
The registration for the same would be open until July 25, as reported by the GST Network.
Existing taxpayers could enrol over the next three months for GST.
E-way bill would need more clarity to function.