The Goods and Services Tax (GST) implementation in the state of Arunachal is sketchy at the moment with businesses caught in their own unique dilemma. While it has been made mandatory, petty business are having a tough time because of the lack of information and where to turn for help. While the state is looking to bring all businesses under the GST net by August 22, the feat is not only ambitious but is unlikely to happen.

GST became a reality for the nation on July 1^st, but despite a good one and a half month’s time passing by, there is very poor implementation on the ground.  It is shocking, that less than 1% of intended target population in Arunachal has been covered by it as businessmen are poorly informed about GST.

This fact has been backed by CM Pema Khandu recently when he expressed concern over poor migration from earlier VAT regime to the GST.

There is a pressing need for the administration to create awareness among the people. Even educated ones are grappling to understand it in the real sense, so one can imagine the dilemma of the lesser educated trading community. At the same time the lack of GST Facilitation Centres is leaving many businesses vulnerable, as even for migrating to the GST, they are being fleeced by varying and steep service charges.

The GST is a ‘Destination Based Consumption Tax’ and such tax will flow to the state in which the goods and services are consumed. Since Arunachal is a ‘consumer state’ and since a major portion of the goods or services consumed in the state is procured or availed from outside the state, it is envisaged that it will benefit on this count. Furthermore, the Union law provides for compensation for loss on account of implementation of GST, for an initial period of five years.

While the landmark GST which has been touted as the biggest tax reform since Independence and is believed to change the indirect tax scenario of the nation by subsuming over a dozen central and state taxes, the confusion and opacity surrounding it is proving a pain for the people.

All said the lack of preparedness both on the path of the authorities and public is definitely making the transition unpleasant.

 

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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