President, PHDCCI, Mr Rajeev Talwar emphasized that real estate is a critical economic activity from all economic and social angles including its contribution to national GDP and therefore, the need for its inclusion within the GST ambit is absolutely essential and it would make an imperative economic sense if preparations for real estate entry into GST ambit are taken with due diligence even at next GST Council Meet. Delay on this front should be avoided and the issue needs a priority consideration, argued the PHDCCI President.
He also stressed that since PHDCCI largely represents the MSME segment, it would thus seek relief measures be provided to textile and MSMEs which are under severe negative impact of GST regime explaining that such measures should be announced by way of providing exemptions, reduction in rate or unrestricted input tax credit or refunds as GST has adversely impacted textile and MSME negatively due to various reasons such as removal of area based exemptions and increase in rate of duty.
Mr Talwar elaborating on GST rate on health insurance argued that rate of GST on health insurance should be reduced to a minimum level of 5% from prevailing 18% rate as this would ensure common people to avail the facility of health insurance at an affordable price.
In addition, he reminded the government that the non-applicability of GST on petroleum is another concern which according to PHDCCI needs redressal as petrol, diesel, natural gas, aviation turbine fuel are excluded from the levy of GST. Such products continue to attract excise duty as well as central sales tax including value added tax. This has resulted in cascading of taxes and increased cost to companies which use such products as inputs for manufacturing of products. Therefore, time has come for the GST Council to immediately bring in all petroleum products under the ambit of GST regime, concluded Mr Talwar.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
