The Bangalore Chamber of Industry and Commerce (BCIC) has welcomed the proposals indicated in the discussion paper of Goods and Services Tax (GST) released by the Empowered Committee of State Finance Ministers on November 10. The discussion paper does not specify the time lines for circulation of model legislations, tax rates, time and place of supply rules relating to goods and services, transitional provisions, usage of forms among others, BCIC said. It, however, believes that the transition provisions as and when enacted would permit seamless carry forward of unutilised credits under MODVAT, CENVAT, VAT, etc.
“A plain reading of the discussion paper indicates that it will impact trade and industry in the area of supply chain, finance, IT systems and process marketing. As far as Karnataka is concerned it appears that Entry tax will continue. It would be worthwhile, if the Centre and the States still consider stamp duty and electricity taxes to be subsumed into the GST net. There is a clear need for a determined action plan to see the implementation,” K R Girish, president of BCIC said. in a statement.
BCIC has also come out with a detailed booklet titled “Direct Tax Code - An overview and recommendations” which contains chamber’s recommendations and analysis on some of the important provisions of DTC. The booklet has synopsis of the provisions and recommendations of BCIC with the rationale for each recommendation.
