Discounts of commodity tax and services that were notified by the center, effective on September 22, companies are preparing for the simple structure

On Wednesday, the center informed the new rates of commodity and services tax (GST), which will be effective as of September 22. The notification comes by the Ministry of Finance to follow the recommendations of the Commodity and Services Tax Council at its 56th meeting on September 3 and replace the notification on June 28, 2017.

However, the center took a decisive step to implement average discounts under commodity and services tax. Each state will also come with separate notifications to implement new rates under government commodity and services tax during the next few days.

The Commodity and Services Tax Council at the meeting on September 3 recommended two main rates of 5 % and 18 % of getting rid of a rate of 12 % and 28 % under indirect tax tax. It has also recommended a 40 % higher rate of sin and luxury goods, and this compensation will end.

The Central Council for indirect taxes (CBIC) also works with stakeholders in the industry and stakeholders to alleviate the problems of transition and provide clarifications on various issues, while the government also made notifications required to re -create new prices.

Meanwhile, the industry is working on strategies to pass the tax cuts of consumers as well as compliance with new tax standards.

Experts note that with the notifications released in prices, it is necessary for industries to align their ERP systems, pricing decisions and supply chain.

“This strategic alignment is very important to ensure smooth implementation, decisively, to ensure that the benefits of rationalizing this prices are effectively transferred to the final consumer,” said Surab Agarawal, the tax partner, EY.