Comments
Vedanta Resources Plc does not expect substantive input tax impairment after GST roll out.
Responding to a query whether his company will be hit by input tax credit impairment like ONGC due to the non-inclusion of petrol and diesel under the GST regime, Anil Agarwal, Chairman of Vedanta Resources, after meeting Finance Minister Arun Jaitley here on Thursday told BusinessLine , “We are still studying the GST, but I don’t think the input tax credit impairment is going to affect us like that.”
While announcing its financial year 2017 results, Indian Oil Corporation had said it was looking at a stranded input tax credit of ₹5,000 crore. ONGC officials too saw a ‘significant hit’ from the impairment. Oil India said it was looking at an impairment of ₹175 crore.
The oil and gas industry estimates as additional indirect tax burden with stranded costs of about ₹25,000 crore due to the non-inclusion of petroleum products under the GST.
In response to queries on the growing retrospective tax liability on Cairn Energy Plc, Agarwal said, “The Congress government has put in retrospective tax, BJP is committed that retrospective tax will not be there. In my individual capacity, I am working with Cairn Energy so they can come and make a settlement. There is no point having litigation with the Indian government everyone should come down and settle the case of retrospective taxation.”
At the meeting, the Finance Minister asked trade and industry representatives to ensure that all benefits arising due to implementation of GST from July 1, 2017 are passed on to the consumers in a transparent manner.
Making his opening remarks at the meeting, Jaitley said that overall incidence of tax after implementation of GST will be less especially in case of the consumer goods than the present incidence of tax, therefore, it is imperative on part of the trade and industry to pass on these benefits to the consumers at large.
Jaitley further said that now a large number of traders have registered themselves and the GST Network and other official machinery is fully ready for smooth roll-out of GST from July 1, 2017.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.