INVEST IN RURAL BROADBAND CONNECTIVITY FOR WIDER IMPLEMENTATION OF GST, SAYS PHD CHAMBER STRESSING THAT GST RATES FOR INSURANCE BE PEGGED AT 12%

PHD Chamber of Commerce and Industry on Friday urged the government to invest so much of money in broadband infrastructure and its availability to over 600 districts in the country as multiple business communities in and around them are facilitated for smooth GST implementation following its smooth passage in the Parliament.

The Chamber which organized a Seminar on “Implementation of GST in Insurance Industry” here today also recommended to the GST Council that given the wider mass appeal of insurance and the focus of the government to rope in farmers and Aam Aadmi well within its ambit, the GST rate for insurance be pegged at 12% and even lower.

Presiding over the Seminar, the Sr. Vice President, PHD Chamber, Mr. Anil Khaitan emphasized that broadband connectivity is an issue in the rural landscape where industries are operational and that now GST has become a reality, its smooth implementation could happen provided adequate broadband availability is ensured in every nook and corner of the country.

This, according to him would need lot of investment with a time tag because industry expects GST implementation from July 1st, 2017, which could happen without any hitch with sufficient internet connectivity since GST would be a paperless taxation.

The PHD Chamber also demanded that insurance is quite a sensitive sector in which multiple stakeholders would have participation including those of farmers and vulnerables, therefore, the GST Council should be so sympathetic as to keep GST rates on insurance at 12% and if possible even below.

Former Chairman, Central Board of Excise and Customs, Mr. S K Goel who inaugurated the Seminar urged the industry to submit its concerns relating to GST rates as also the ways and means through which it should be implemented to GST Council so that their addressal becomes timely before the rates are finalized.

Chairman, Indirect Taxes Committee, PHD Chamber, Mr. Bimal Jain in his remarks clarified that GST registration would have to be multi-locational given its nature and supplies of goods and services since it would be a destination based consumption tax.

Leading Author, Books on Indirect Taxes and Corporate Laws, Mr. V S Datey and Co-Chairman, Insurance Committee, PHD Chamber, Mr. S K Sethi also participated in the Seminar.