 "Goa to convene special session to ratify GST Bill: Laxmikant Parsekar")
Industry will press for creation of a mechanism to advice traders on legal provisions following roll out of the indirect tax regime GST at their meeting with the state finance ministers on Tuesday.
In its representation, Assocham will pitch for a two-year grace period during which the government may refrain from taking penal actions except in case of tax frauds on non-deposit of collected taxes.
"Considering significant changes in tax processes and documentation, adequate time is required by the industry for transition to GST after rules are made public," Assocham said.
During the transition period, it said, the Centre and the states should set up a separate machinery to issue immediate clarification on legal provisions.
In Tuesday's meeting, CII will demand single centralised registration of suppliers of services who operate in different states, in place of multiple state wise registrations for specific service sectors.
"This is a very difficult and cumbersome exercise for service sectors such as banking, insurance, telecom, airlines, and consulting which have PAN India operations," CII said.
It will also flag the provision in model GST law which gives the Central/State Government the power to require a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 to carry with him certain documents transit forms, entry forms.
"It is recommended that provision in the law be withdrawn and need for any documentation for transit of goods be done away with for ease of business and efficient/ speedy movement which is the prime objective of GST," CII said.
Ficci, on its part, will raise the issue of dual administrative control vested with both the Centre and states, wide discretionary powers given to tax authorities and potential of probable disputes due to separate valuation mechanism prescribed for related party transactions.
As regards scope for multiple audits provided in the model law, Assocham would put forth before the empowered committee of state finance ministers that such multiple investigations will increase harassment of taxpayers.
It will also demand that key infrastructure such as port, airports, roads, bridges be spared from GST so that economy becomes competitive.
The government is planning to roll out the new indirect tax regime from April 1. While the Centre has to draft the CGST and IGST laws, the states will have to come up with an SGST law.
GST will replace more than a dozen central and state levies, including central excise, service tax and sales tax as well as VAT, to make movement of goods seamless.
