Goods and Services Tax will usher in a very simple and less burdensome taxation regime as it will be a single rate indirect tax which can be paid by debit/credit cards, cheque and NEFT, Revenue Secretary Hasmukh Adhia said on Wednesday.
He said, GST will make it easier for traders and industry to access Input Tax Credit and also ease compliance burden as the entire country will become a single market.
"GST is a very very simple thing to follow, it is going to be very easy for all of you. There will not be any border restriction when you move goods from one state to another. And many of the small taxes will go away. It will be one unified tax," Adhia said at the Vibrant Gujarat global Summit here.
The government had planned to roll out GST, which will subsume excise and service tax and other local levies, from April 1, 2017. However, vexed issues like jurisdiction over assesses, remain to be resolved by the GST Council chaired by Union Finance Minister Arun Jaitley.
"We are working overtime to make it a reality as early as possible. Our target date is April 1, 2017, and we will see to it that we try our best to bring it to people," Adhia said, adding that taxes can be paid by way of NEFT, RTGS, cheque, and debit/credit cards.
Explaining the procedure of tax payment under the new tax regime, he said GST is a single tax and Integrated GST on cross border movement of goods and services is only an "interim" tax for which input tax credit can be claimed.
"GST will indeed become a very simple and less burdensome tax for most of the people of the country. Be it manufacturers or traders. Simple tax, single compliance procedure, it will become very very simple for the people to pay taxes," Adhia said.
The GST Council has already reached an agreement on a 4-tier tax structure — 5,12,18 and 28%. Besides, a cess on demerit, luxury and some more goods would be levied.