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GST is one of the most massive tax reforms brought about by the government post-Independence. The law will transform the indirect tax regime and turn it upside down. It would bring about changes that have been a bone of contention since long. The law has been doing rounds since last 16 years. It was first mooted during the tenure of Atal Bihari Vajpayee government in the year 2001. Since then it had been taken up at various times but the respective governments could not turn it into law. It was due to the conscientious efforts of the present government that this legislation was passed by both the houses and with the notification in the gadget, it would become enforceable.
The GST registrations were closed in the month of April, Hansmukh Adhia, Revenue Secretary, Ministry of Finance recently announced that the GST registrations would restart from June 1. This would give a chance to those who missed out on the chance to register themselves within the stipulated time. Through this renewal of registration process, the government aims at including small-time retailers and service providers who, in their reluctance and unawareness had missed out on the opportunity to join the bandwagon.
Adapting to changing regimes is always difficult for businesses, they tend to do it only as a last resort thing. It is a common tendency for the traders and service providers to wait until the last date, before adapting to a change for they are under the impression that the government may backtrack and the existing system may return.
On the other hand, the government is not bringing this opportunity only to help the masses, its motive behind restarting the entire process is to increase its revenue and enrich its treasury. The process is expected to add approximately 1/4th of revenue of what was expected from the earlier registration process.