The challenges that were faced during the implementation of GST are as follows:

1. Establishment and upgradation of IT framework: The number of taxpayers is likely to go up significantly. Also, the process of tracking inter(orintra) State transactions will be online. The type of clearinghouse mechanism through GSTN considered in the dual model GST will handle large volumes of data.

For this purpose, the Goods and Service Tax Network (GSTN) has been set up by the Government to create enabling environment for smooth introduction and implementation of GST.

2. Meeting implementation challenges: The implementation of GST systems and procedures would not be very lengthy and complex process in a long run. A GST Implementation Advisory Committee has been constituted within CBEC for overall supervision and monitoring of progress towards implementation of GST.

3. Tax administration: The Central Board of Excise and Customs(CBEC)and the State Tax Administrations will responsible for implementing CGST and SGST respectively. For implementing dual GST, arobust and integrated tax administration is required to efficiently track supply of goods an dservicesa cross the country as also to precisely account for the taxes. Putting in risk management system will give meaningful results only when there will be an efficient tax administration.

4. Effective coordination between Centre & State tax Administrations: The assignment of concurrent jurisdiction to the Centre and the States for the levy of GST would require a unique institutional mechanism that would ensure that decisions about the structure, design and operation of GST are taken jointly by them. For it to be effective, such a mechanism also needs to have Constitutional force. There is a need of harmonization of processes & procedures between CGST / SGST & IGST Law.

5. Training of Officials and Trade &Industry: Until the people from trade and industry are adequately educated about the laws and procedures related to GST, there is possibility of non compliance and tax evasion. Training / familiarization of trade industry on a large scale will also be required.