The IT industry body Nasscom has raised questions on GST rollout impacting India’s export competitiveness as the new regime will create multiple tax points for companies having various delivery centres.
In an interaction with DH, Nasscom president R Chandrashekhar said moving from single taxation points to multiple points will create hindrance to the industry. “I believe that it will bring a challenge to our great initiatives to do ease of doing business. The GST will bring different taxation points with CGST(Central GST), IGST (Interstate GST) and SGST (State GST),” he said.
He also pointed out that GST will not allow self-declaration by companies and no flexibility allowed in valuation. “It will help tax authorities approach companies easily and tax them. So companies’ money will be locked up without refund,” he said.
Chandrashekhar said a delegation from Nasscom has met Finance Minister Arun Jaitley and officials to convey the concerns of the industry. “There is a recognition of the problem. We anticipate a positive discussion and response upon our concerns,” he said. Nasscom has submitted a 72-page ready-reckoner for its members giving more information on various provisions that will have a bearing on the industry.
Nasscom president also raised concerns over the special economic zone (SEZ) facilities where IT companies are located. “The GST regime will take away all the concession to SEZ and it will affect in the long run,” he said.
Meanwhile, Wipro CEO Abidali Z Neemuchwala congratulated the government on this significant milestone. “We must collectively ensure there is no drifting away from the intent of the bill and the cornerstone principles of this government in improving ease of doing business and reduced tax-related litigation in India. I am sure the government would engage meaningfully with the Industry on its concerns and arrive at an effective framework for implementation of GST,” he said.
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