Goods & Services Tax (GST) in IndiaGST – Negligible Exemptions Are On Card

December 19, 20150
Goods & Service Tax in India will result eradication of various exemptions .This is also clear from the statement of  Shri Najib Shah, chairman, Central Board of Excise and Customs (CBEC), who aired that
“Tax exemptions until now extended to industry for their expansion and diversification will have to go with GST legislation becoming a reality,”
Further , Ms Rashmi Verma Special Secretary (Revenue), has said that
“Government would drastically prune the list of exemptions currently being enjoyed by the industry as incentives for business expansion in hilly states and north-eastern part of India.”
“Reduction in exemptions would result in seamless flow of goods and services tax and substantially arrest its cascading effect.”
Going by their versions and given the fact that a uniform tax under GST can be possible only when uniform tax is levied on a product or service in each and every part of the country,  the following exemptions and incentives will finish with the onset of GST ;
a. area based exemptions 
b. industry based exemptions 
c. incentives to industries
d. general exemptions etc .
However, it appears that the exemptions to supplies to ICB, UN and export incentives will continue . Though, no time frame was indicated by them as to when GST will roll out finally .
However, a reasonable time period will be around August to September 2016 only when such things can  become a reality,since winter session is about to finish with GST bill passing a distant dream away .
It is worthwhile to mention that  basic draft of GST bill is available in  public domain. Whereas, final draft of GST is about to be released in coming days . 

 by Anandaday Mishra, Founder Advocate , AMLEGALS 
( The author is one of the leading litigation and advisory advocate. He has published various research papers on GST . He handles cases in Tribunals  & High Courts of India. He can be contacted on anand@amlegals.com .For more, please refer www.amlegals.com ) 

Leave a Reply

Your email address will not be published. Required fields are marked *

 
Disclaimer and Confirmation
As per the Rules of the Bar Council of India, advocates are not permitted to advertise. By clicking on the “I agree” button, the user agrees and acknowledges that:
This website simply explains as to how litigation is handled, the advice is rendered for various practice areas of the firm and how our law firm i.e. AMLEGALS does it differently;
That the user has visited the website of our law firm to know about AMLEGALS, White Papers, Legal articles, Legal updates & Case laws on various areas of law that are published by the Firm from time to time.
AMLEGALS  assumes no liability for the interpretation and/or use of the information contained on this website, nor does it offer a warranty of any kind, either express or implied.
 
AMLEGALS is not liable for any consequences of any action taken by the user by relying on material/information provided on this website. Nothing mentioned on the website should be construed as legal advice. For more information on our working and to get in touch with the AMLEGALS team, please feel free to get in touch on info@amlegals.com.