Industry in firefighting mode as govt begins GST implementation

Industry in firefighting mode as govt begins GST implementation

Industry in firefighting mode as govt begins GST implementation

The advent of Goods and Services Tax (GST) has put the industry into firefighting mode in order to prepare for the biggest tax reform in the country since independence.

Such was the scare in the industry that Revenue Secretary Hasmukh Adhia once blamed the former for rumour-mongering on delay in the GST implementation date.

Adhia had also lashed out at the industry and traders for being complacent in implementation of the GST system, and according to him, “the government was ahead of the industry this time”. Instances of protests by industry players and traders have been pouring in from across the country.

Confederation of Indian Industry (CII), which earlier had claimed that by the time GST is implemented, 70% of the businesses would be prepared for it, confessed that traders who were registered only under VAT might face some difficulties.

The industry body spokesperson, however, said that the e-filing process has been eased out a lot. He also added that the industry, at least among the CII members, is fully geared up for the rollout.

Associated Chambers of Commerce of India (Assocham), which seems to be critical of the GST implementation date, has on its part submitted 18 representations on the fallout of GST on the industry.
The representations, which DH has been able to access, relate to various sectors of industry, change in the implementation date, tweaking of tax rates, among others. Though the government has been very accommodating in adjusting the tax rates, the representation for postponing the GST rollout date was not taken well by the Finance Minister, according to sources.

Ficci, which had kept quiet till the date on the GST issue, has welcomed its implementation.
A Ficci spokesperson said, “Ficci expects that the rollout of GST will bring about significant gains to the country’s economy and advantages for stakeholders. GST will prevent cascading of taxes since Input Tax Credit (ITC) will be available across goods and services at each stage of the supply chain.”

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