Industry for mechanism to advise traders on GST norms

Industry will press for creation of a mechanism to advise traders on legal provisions following roll out of the indirect tax regime GST at their meeting with the state finance ministers today. In its representation, Assocham will pitch for a two-year grace period during which the government may refrain from taking penal actions except in the case of tax frauds on non-deposit of collected taxes. 

“Considering significant changes in tax processes and documentation, adequate time is required by the industry for transition to GST after rules are made public,” Assocham said. During the transition period, it said, the Centre and the states should set up a separate machinery to issue an immediate clarification on legal provisions. 

In tomorrow’s meeting, CII will demand single centralised registration of suppliers of services who operate in different states, in place of multiple state wise registrations for specific service sectors. 

“This is a very difficult and cumbersome exercise for service sectors such as banking, insurance, telecom, airlines, and consulting which have PAN India operations,” CII said. It will also flag the provision in model GST law which gives the Central/State Government the power to require a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 to carry with him certain documents transit forms, entry forms.