Goods & Service Tax in India will result eradication of various exemptions .This is also clear from the statement of Shri Najib Shah, chairman, Central Board of Excise and Customs (CBEC), who aired that
"Tax exemptions until now extended to industry for their expansion and diversification will have to go with GST legislation becoming a reality,"
Further , Ms Rashmi Verma Special Secretary (Revenue), has said that
"Government would drastically prune the list of exemptions currently being enjoyed by the industry as incentives for business expansion in hilly states and north-eastern part of India."
"Reduction in exemptions would result in seamless flow of goods and services tax and substantially arrest its cascading effect."
Going by their versions and given the fact that a uniform tax under GST can be possible only when uniform tax is levied on a product or service in each and every part of the country, the following exemptions and incentives will finish with the onset of GST ;
a. area based exemptions
b. industry based exemptions
c. incentives to industries
d. general exemptions etc .
However, it appears that the exemptions to supplies to ICB, UN and export incentives will continue .
Though, no time frame was indicated by them as to when GST will roll out finally . However, a reasonable time period will be around August to September 2016 only when such things can become a reality,since winter session is about to finish with GST bill passing a distant dream away .
It is worthwhile to mention that basic draft of GST bill is available in public domain. Whereas, final draft of GST is about to be released in coming days .
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
