With the Goods and Service Tax (GST) amendment Bill passed in the Rajya Sabha, Nasscom today said that this regime would streamline the taxation system and make it more transparent, but would also create multiple taxation points, which will be a challenge for the IT industry.
"The concerns regarding multiple taxation points have been brought to the notice of the government and it expects a positive response while framing the GST law," said Nasscom President R. Chandrasekhar.
He said the IT services are intangible, adding a number of concerns have been shared with the government with regard to the way things are looked at in the GST law.
"We feel that today for IT services, it is a simple regime. One single point of taxation which is central service tax, one single point of registration, one single invoice, one single place where you have to go for any refund," said Chandrasekhar.
"What we are clearly given to understand is that post the Constitution Amendment Bill, serious discussions will take place on which all key service sectors will be impacted, notably the IT-BPM sector, telecom sector and BFSI sector. These are the service sectors which will have the maximum impact from the GST, which need special attention," he added.