Bring Out GST Rules & Regulations on Public Domain: PHD CHAMBER

By 121 News

Chandigarh 10th August:- PHD Chamber of Commerce and Industry urged the government to unveil draft rules and regulations relating to Goods and Services Tax (GST) on public domain to enable industry to promptly react and share its comments on them even before the 122^nd constitutional amendments about the GST enactment is passed by the Rajya Sabha.

Dr. Praveen Rathee, Regional Director, PHD Chamber informed that the Chairman, Indirect Tax Committee of PHD Chamber, Bimal Jain has suggested that agriculture and agricultural produce including food-processing industry be kept out of GST. He added that though the 122^nd constitutional amendments for GST legislation has been awaiting the approval of the upper house of the Parliament, the industry is unaware of the contents of the draft rules and regulations of such an important legislation and thus either unable to react or submit its reactions and views to the government on such critical draft note.

Bimal Jain demanded that until the Rajya Sabha endorses the constitutional amendment already passed by the Lok Sabha, the government should put the detailed draft in the public domain to elicit the views of all stakeholders including industry on GST so that a foolproof legislation is evolved to the best satisfaction of one and all.

Bimal Jain added that food is a large portion of spending of lower income households and any tax on food and farm produce would be regressive since production and distribution of food as well as agricultural produce is largely unorganized in India.  As a result it is difficult to extend GST on this sector.

The Chamber is of the view that since most food items have been either exempted from tax or taxed at a lower rate, it should be the attempt of the government to let the agriculture sector escape taxation in a just manner after the GST legislation is enacted.

Dr. Praveen Rathee said that the PHD Chamber had played a vital role in the region when legislation on Value Added Tax was introduced and later implemented in 2005. The consideration of suggestions by important stakeholders at an appropriate time before the enactment of such legislation was always a help in its effective implementation.

 

 

--