Industry expresses concerns to government over GST Law

FICCI
India Inc has raised concerns with the government on provisions emanating from the model GST Law including dual administrative control vested with both Centre and the states and wide discretionary powers given to the tax authorities.
A FICCI delegation led by its past president YK Modi met Revenue Secretary Hasmukh Adhia and other officers engaged in policy making in relation to Goods and Services Tax at the Finance Ministry . FICCI raised concerns of the trade and industry on the model GST law which has been in public domain.
FICCI’s feedback on the model GST law has also been submitted to the government. Some of the issues raised by FICCI included dual administrative control vested with both Centre and states, wide discretionary powers given to the tax authorities, provisions relating to mandatory pre-deposit for filing appeals, restrictions imposed on availing input tax credit, potential of probable disputes due to separate valuation mechanism prescribed for related party transactions among others.
FICCI has asked the government that provisions which may lead to unwarranted disputes in future may be given a relook before finalising the law. An Assocham delegation also met the Revenue Secretary and raised the issue of fate of GST on sale and consumption of electricity.
The delegation pointed out that while Entry 53 of List II of the Seventh Schedule of the Constitution of India has not been deleted by the Constitution Amendment Bill, there is no restrictive covenant under the CAB seeking to exclude levy of GST on electricity unlike in the case of alcohol, petroleum products.
It pointed out that contrary to this, the Central Government’s view before Rajya Sabha Select Committee on GST indicates that inclusion of electricity is not envisaged in GST. Non-inclusion of electricity will lead to significant economic distortions, Assocham said.

Leave a Reply

Your email address will not be published. Required fields are marked *