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The
meeting in question was an interactive session organised
by the PHD Chamber of Commerce, an apex industry lobby
group in North India, with the Member Secretary of the
Empowered Committee of State Finance Ministers, Mr
Satish Chandra.
The
meeting in the Capital evoked great interest among trade
and industry here, who gathered in good numbers to get a
glimpse of the Goods and Services Tax (GST) model that
India proposes to implement from April 1, 2010.
With
less than a year to go before the avowed date of GST
implementation, industry is very keen that they have
some idea on how one of the most complicated tax reform
– GST introduction – would be implemented.
However,
to many industry observers’ surprise, captains of
trade and industry returned home empty handed from the
meeting as the chief guest stuck to the rule book and
declined to talk about the GST model that would be
implemented.
Code
of conduct
“I
am not in a position to share anything (about the
proposed GST framework) with you as the Election
Commission’s model code of conduct is in force. I can
assure you that all efforts are being made by the Centre
and the States to see that the transition is easier and
the purpose of the reform is met,” Mr Chandra told
PHDCCI members here on Thursday.
Mr
Chandra added that many issues were at the final stages
even as he noted that many loose ends were yet to be
tied up. The Centre and the States have been in parleys
on GST implementation for many months now.
Industry
may have to wait another month or two to get a
perspective of the GST model that India would adopt.
India Inc is keen that the empowered committee should
come up with a white paper on GST implementation.
So
why is India Inc keen to have an advance intimation of
the GST model and the draft legislation for it? Because
companies need time to prepare their processes and also
adjust their software as many are working under SAP
environment. Industry is also keen that all taxes are
subsumed into GST so that there was no cascading effect.
Success
of the GST depends on industry. Unlike VAT, the proposed
GST is a complicated reform as it involves both the
Central and State taxes. Policy makers must divulge as
early as possible what they are thinking.
The
empowered committee must come up with a white paper on
GST. Public has the right to know about the thinking as
reform of such big dimension is bound to have
transitional issues,” said Mr T.R. Rustagi, retired
Chief Commissioner of Central Excise and Customs.
Although
India successfully implemented Value Added Tax at the
state level, this tax reform was introduced from April
1, 2005 only after several postponement of the
implementation date.
PHDCCI
Past President, Mr Sanjay Bhatia told Business Line that
the chamber (PHDCCI) had been taking up issues relating
to GST implementation at various forums from time to
time.
This
is not the first time that industry is stressing the
need for the policy makers to take them into confidence
in the matter of GST implementation.
Sou rce
: The HinduBusinessLine - India, dated
11/04/2009
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