Gear up for GST, trade and industry urged

The trade and industry should familiarise themselves with the goods and services tax (GST) to be rolled out later this year and make all efforts in coordination with the tax departments to make it a success, according to the Commissioner of Customs, Central Excise and Service Tax B Hareram.

He was speaking as chief guest at an awareness programme organised here on Wednesday by the AP Chambers of Commerce and Industry Federation. G Sambasiva Rao, president-elect of the federation, presided over the meeting.

Hareram said there were bound to be certain teething troubles and challenges to be surmounted, but if the department and the trade and industry work together, it should not be a daunting task.

Deputy Commissioner of Customs Kshitij Jain said all those doing business over ₹20 lakh should get registered and the threshold limit in the case of the north-eastern States is ₹10 lakh. He explained the salient features of GST, as it is levied by both the states and the Centre, and how it subsumes most of the indirect taxes. He said a robust IT network is critical to the success of GST.

While the effects of GST will be mostly positive, such as hike in GDP growth rate and goods becoming cheaper, “there is also a possibility that inflation might go up slightly. There is enough empirical evidence to suggest it, though there is no theoretical proof.”

Harikrishna Reddy, the Assistant Commissioner of Service Tax, explained the process of registration and the online payment of tax and Joseph Gouda, the Assistant Commissioner (Service Tax), about the transitional provisions and the input tax credit during the transition period from the current system to GST and the continuous supply of services.

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