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India Inc expresses concern with govt on GST provisions

GST Constitutional Amendment Bill was passed by Parliament few days back

Policy Pulse
Publish Date: Aug 20 2016 11:06AM | Updated Date: Aug 20 2016 2:17PM

India Inc expresses concern with govt on GST provisions

 Indian industry chambers have expressed concerns on the draft Goods and Services Tax (GST) law at a meeting in the national capital with Revenue Secretary Hasmukh Adhia.

 
They voiced their apprehension on dual administrative control vested and wide discretionary powers for tax authorities.
 
"Provisions may lead to unwarranted disputes in future so it requested to give a re-look the law before finalising," a Federation of Indian Chambers of Commerce and Industry (FICCI) representative said after the meeting.
 
"Non-inclusion of electricity will lead to significant economic distortion," Assocham said in a representation to the government.
 
It also felt that on products like alcohol and petroleum, industries will operate under a hybrid tax regime and will be unable to claim GST credit due to temporary non-inclusion of these products, that could increase costs.
 
"Consequently, some thinking around zero rating or concessional taxation under existing law on the inputs for these industries is warranted," Assocham said.
 
The GST Constitutional Amendment Bill was passed by Parliament few days back, while three states - Assam, Bihar and Jharkhand have ratified the bill so far.