SECOND SERIES OF PHD EDUCATIVE & KNOWLEDGE SERIES ON GOODS & SERVICES TAX

GST ITC/ Export & Import of Goods & Works Contract under GST

Thursday, 17 November 2016 at PHD House, New Delhi

The Indirect Taxes Committee of PHD Chamber is organizing its Second Knowledge Series on Goods & Services Tax with the objective of analyzing in detail the GST provisions vis-à-vis the present indirect tax provisions and understanding the GST Impact on different industry sectors.

The third workshop in the above series was organized on 17^th November 2016 at PHD House, New Delhi covering GST Input Tax Credit and Export & Import of Goods/ Services & Works Contract under GST.

Mr. Bimal Jain, Chairman Indirect Taxes, PHD Chamber mentioned that India is looking at dual GST Model. Both the centre and states are going to levy tax on goods and services. He accentuated that GST council have decided four tier rates 5%, 12%, 18%, 28% and 28% with cess for tobacco, luxury cars, etc. He also gave three GST mantras for utilization of credit sequentially. He opined that GST is one nation, one tax. It will create an open national unified market for all of us. He further said that GST is applicable to all over India including Jammu and Kashmir. He explained the various provisions for GST Input Tax credit and Negative List for availing GST credit under GST Model law. He also talked on matching concept under GST. He concluded by giving a brief view of GSTN network.

Shri S D Majumdar, Former Chairman, CBEC shared that that taxman and taxpayers should prepare themselves for GST.  Mr. Majumdar explained the upcoming dual structure of GST for both Centre and States. He observed that our constitution does not permit to take away fiscal autonomy of states. GST will remove the cascading effects of taxes and the compliance cost will come down. He further stated that for the first time India will have a common economic market. He emphasized that GST being a destination based consumption tax, it will help the consumption states to improve their economy and become financially sound. He highlighted that taxing small and medium enterprise is not cost effective. He concluded by saying that Rules and their proper implementation is required for effective GST regime.

Mr. N K Gupta, Co-Chairman, Indirect Taxes Committee mentioned that proper implementation of GST is a key to success. He shed light on the seamless flow of credit under GST. He felt that it will take time to iron out specific issues under GST as it has taken ten years to settle the TDS provisions. He mentioned that in GST regime stock transfer becomes taxable. He concluded by saying that huge taxation liability and tax provisions are levied in work contracts under GST.