The rollout of goods and services tax (GST) is by no means going to be a smooth one, but it is the most revolutionary tax reform undertaken by the country and one which is quite necessary in the present scenario, according to several experts. It brooks no further delay.
They were speaking here on Friday at a two-day seminar on the implementation of GST organised by the Visakhapatnam branch of the Institute of Chartered Accountants of India (ICAI).
K. Nagendra, the Deputy Commissioner of Commercial Taxes, who inaugurated the seminar, said GST was the most rational levy accepted and adopted in most of the countries and it would remove most of the tax anomalies. But it would take away the right of the States to levy taxes, and states would also suffer substantial revenue loss in the initial years at least. The Union Government would make up the loss. It is estimated that Andhra Pradesh might incur a revenue loss of around Rs 4,000 crore due to GST implementation, he added.
He said that "a robust and very efficient GST network is the pre-requisite for implementation of GST without any hassles. It is necessary for dealing with inter-state transactions. Issues of dual control will also have to be addressed."
S. Ramakrishna, a CA, said that "there is a widespread misconception that GST will usher in 'one nation, one tax, and one rate' regime. This myth is being propagated by the media, it is not true. In the Indian context, we are introducing a concurrent, dual GST suited to our federal structure. There is a long, bumpy road ahead."
S. Thirumalai, another CA, explained about the valuation rules and input tax credit. K. Ramachandra Rao, the chairman of the Vizag branch, and others spoke on related issues.
sarma.rs@thehindu.co.in