India Inc voices concerns over model GST law

India Inc on Friday met Revenue Secretary Hasmukh Adhia, and submitted its concerns on model Goods and Services Tax (GST) law.

Their major concerns included dual administrative control vested with both the Centre and states, wide discretionary powers given to tax authorities, provisions relating to mandatory pre-deposit for filing appeals, restrictions imposed on availing input tax credit, potential of probable disputes due to separate valuation mechanism prescribed for related party transactions. During the meeting, Ficci, CII and Assocham flagged concerns about the petroleum and liquor industries, which they said would operate under a hybrid tax regime.

Ficci requested that provisions which may lead to disputes in future may be given a relook before finalising the law. Assocham raised the issue of supplies to SEZs. It said that the model GST law does not have provisions dealing in supplies to SEZs, and called for an amendment to be made in the SEZ Act.