Pradeep Jain - Chartered Accountant

CREATION OF SECTOR SPECIFIC GST WORKING GROUPS

GST DAILY DOSE OF UPDATION

CREATION OF SECTOR SPECIFIC GST WORKING GROUPS:-

Since GST is going to subsume a number of indirect taxes such as excise duty, service tax, VAT, state levies such as entry tax, purchase tax, octroi etc., its impact will be observed on every sector of business/service. It is also pertinent to note that since the draft GST laws and draft rules have been placed in the public domain, the government is flooded with representations from various sectors regarding their industry specific issues that should be resolved in the GST regime. Consequently, the CBEC has decided to constitute sector specific working groups to address the concerns of trade and industry.

The office order dated 24.03.2017 has decided to form 10 sector specific GST working groups as follows:-

1.     Banking, financial and insurance sector.
2.     Telecommunication
3.     Exports including EOUs and SEZs
4.     IT/ITES
5.     Transport and Logistics
6.     Textiles
7.     MSMEs including job work
8.     Oil & Gas
9.     Gems and Jewellery
10.                        Services received and provided by the government

Among the above groups, the main concern is of Medium and Small Enterprises which are required to cope up with the challenges of matching of invoices for credit availment in automated environment as they will also be compelled to develop software for easy and convenient compliance with GST Law. Another substantially effected industry will be that of transport sector which is presently enjoying exemption from compliance as service tax is payable under reverse charge mechanism. Moreover, at present there is facility of abatement wherein the effective rate of service tax is lower as compared to normal service tax rate and the transporters expect that similar rate is imported in GST regime too as transportation is the basic service utilised for every commodity and if the GST is imposed at higher rate, it will lead to increase in inflation level too. Similarly, there is no whisper about continuance of exemptions and concessions to EOUs in the GST era which is major concern for EOUs as the very survival of the EOU scheme is at stake. If no benefits are granted to EOUs, the scheme will no longer be lucrative.

The constitution of sector specific working groups to consider the problems faced by particular industry is appreciable and clearly indicates the intention of the government of tax friendly environment and ease of doing business. The representations and suggestions to the working groups are to be made latest by 10.04.2017.

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CREATION OF SECTOR SPECIFIC GST WORKING GROUPS

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