Govt. begins review of legal issues in GST
The Central Government has begun a review of the goods and services tax (GST) law so as to provide clarity on the various issues that have cropped up regularly since it implemented in the year 2017.
- This review is being undertaken to clear the air on various issues such as whether the services provided by back offices of the multinational companies functioning in the country qualify as exports, which don’t have to pay tax.
- Also, there is confusion regarding discounts which are reimbursed by the FMCG companies and the consumer durables companies to their dealers so as to sell the products at reduced prices, are liable for GST or not.
- This undertaken review is expected to simplify various laws and reduce the ever cropping disputes.
- The states and the central governments have received multiple representations from the industry regarding matters related to the issues concerning GST and they need to be addressed through this review.
- States have also flagged multiple issues that need clarification either through a change in the law or the rules.
- The government is also looking into the reduction of litigation over direct and indirect taxes, but GST disputes at multiple forums regarding are rising on a daily basis.
- Several issues have conflicting views that also include the Authority for Advance Rulings. There are more than 200 companies which are involved in disputes on intermediary services.
These issues will be forwarded to the official GST Council for further discussions. Subsequently, based on their feedback a detailed proposal will be created and put forward to the council for a final decision.
Month: Current Affairs - July, 2021
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