The much-awaited Goods and Service Tax (GST) Bill will soon be a reality. The central government is taking every possible effort to rollout the new tax regime by July 1, 2017.

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The tax officials of  the central and state governments will this week hold their maiden meeting on devising a formula for tax rate to be levied on services under the tax regime, as reported by PTI. 

Quoting a senior official, the report said that the while the GST Council had previously decided on a four- tier rate structure of 5, 12, 18 and 28%, its fitment committee will hold its first meeting this week on slotting different services in one of the slabs.

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KDK Softwares said that the threshold level in proposed GST bill is reduced to Rs 10 lakh in general and Rs 5 lakh for the north eastern states which is Rs 1.5 crore in the current central excise law and not covering the chunk of SMEs which are exempted in current tax structure. 

This will significantly impact the SMEs’ working capital as since the threshold is low, most SMEs will have to pay high portion of their capital towards tax in future.