GST to have negative impact on oil and gas industry
- Author: Carolyn Briggs Jun 13, 2017,
Jun 13, 2017, 23:58
The Goods and Services Tax (GST) - the nation's biggest tax reform since independence - is on track for scheduled implementation from July 1, a top government official said today, scotching rumours of a delay. "Please do not be misled by it", Adhia said in a tweet. He said, "I am extremely thankful to Prime Minister Narendra Modi, Arun Jaitley, and Union Textile Minister Smriti Zubin Irani and GST Council for reducing service tax on job work and bringing relief to the textile industry from the extra burden as majority of the work of textile manufacturing is with SMEs and is carried on through job works especially in the power loom, knitting, processing and garment manufacturing sectors".
It said almost 60% of small businesses in the Country have been devoid of digital technology and they can not comply with GST from July one. States such as Kerala, Goa, Odisha, Assam and Madhya Pradesh supported a 5 per cent GST rate for gold, while other states such as Gujarat, Delhi, Uttar Pradesh, Rajasthan, Telangana and Punjab were in favour of 2 per cent tax rate, sources said.
Additionally, as services contribute a significant proportion to the upstream companies capex and opex, the increase in tax rate from 15 per cent to 18 per cent would impact the upstream companies adversely, it said.
However, the entire programme of GST rollout lags only on one count, the implementation of e-way bills.
Once two different tax percentages are applied, corporation would end up collecting 18% GST for tickets priced below Rs 100.None of this amount will reach the corporation, instead it goes to the state government directly and as per the latest decision of state government, the funds will have to be devolved by the state to local bodies to make up for the loss incurred by them.
Prices of items like LED televisions, air conditioners and washing machines have been slashed the most as they fall in the 28 per cent GST slab, a jump from the current 23 per cent tax rate. "You require honest intent for that", he told reporters here when asked about some industry representatives seeking more time for the GST roll-out.