Skip to main content

Centre Likely to Announce Procedure to Address GST Related Issues Promptly

Centre Likely to Announce Procedure to Address GST Related Issues Promptly
GST Council may take up issues suo motu or if companies approach it directly
The government is looking to announce a procedure wherein the GST Council can address issues related to the indirect tax regime either suo motu or after being approached by companies or industry bodies, two people with the knowledge of the matter have said.“There is a realisation that had a few proactive steps been taken, certain issues related to GST could have been addressed quickly.The government wants businesses to approach the GST Council rather than file writ petitions in courts,“ a person in the know told ET.
“The government is looking to prescribe a procedure by which companies can directly approach the GST Council or issues can directly be identified through social media interactions,“ another person close to the development said. The idea is that the GST Council could take swift action or address a problem when a number of people start complaining on Twitter, he said. Under the new mechanism, issues which are being tweeted to government's Twitter handles around GST would be picked up on a priority basis and resolved or clarified immediately.
“Currently, Twitter handles are managed by tech professionals who often just repeat the stated lines. But the government does come to know about the magnitude of the problem and the GST Council can intervene and take immediate action,“ the person close to the development added.
At last count, about 49 writ petitions have been filed across courts in issues related to GST, of which about 16 are by businesses seeking quick resolution.
“It would be good to see the various issues raised by businesses in various courts by filing writ petitions resolved by the GST Council as approaching courts on such issues is a sub-optimal solution. While a resolution of some of the issues raised may require legislative changes which need to be taken up at the earliest, some of the issues can also be addressed by providing clarifications to business,“ said MS Mani, partner-GST, Deloitte India.
In some cases, leeway could be given where a sector could be faced with an unintended consequence. According to people in the know, there is a feeling in the government that if issues are addressed promptly by the GST Council, most companies would avoid approaching the courts.
The procedure to sort out issues would be separate from the proposed advance authority for rulings, a vowed both the people close to the development.ET on October 4 reported that a few senior tax officials and corporates have urged the government to start AAR as early as possible to clear doubts on GST, as this will prevent companies and associations from approaching courts for clarity.
The Economic Times, New Delhi, 10th November 2017

Comments

Popular posts from this blog

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

Differential Tax Levy under GST: Food Firms May De-Register Trademarks

Differential Tax Levy under GST:Food Firms May De-Register Trademarks The government’s decision to charge an enhanced tax rate on trademark food brands is leading several rice, wheat and cereal manufacturers to consider de-registering their product trademarks. Irked by the June 28 central government notification fixing a 5 per cent goods and services tax (GST) rate on food items packaged in unit containers and bearing registered brand names, the industry has made several representations to the government to reconsider the differential tax levy, which these players say is creating an unlevel playing field within these highly-competitive and low-margin industries. Sources say that the move has affected the packaged rice industry the hardest and allowed the un-registered market leaders, India Gate and Daawat, to gain advantage as compared to other registered brands such as Kohinoor and Lal Qilla. Smaller players are even more worried with this enhanced rate of tax (against the otherwise …