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.
