With issues like the exclusion of petroleum products from the purview of Goods and Services Tax (GST) yet to be resolved, India may miss the GST implementation deadline of April 1, 2010. “There are various issues remaining unsolved. Currently, we are taking various industries’ views on them to resolve them at the earliest,” a senior official of the Central Board of Excise and Customs told PTI here today.
“A re-look is needed in certain areas such as the exclusion of petroleum products from GST as well as other open areas like purchase tax. The rate structure is also needed to be finalised,” the official added.
Once implemented, GST will replace most indirect taxes at central and state levels, he said.
Octroi, a levy that exists in Maharashtra, would also be kept outside the GST ambit, he said, adding that some states still were not fully on-board. This is also a stumbling block in the implementation of the GST.
Logistics players, however, are on a roll and said that the GST introduction is likely to revolutionise the sector.
“The introduction of GST will make the supply-chain management business simpler. Moreover, money spent on other taxes can be used to improve the quality of services. It will be another step in opening up the Indian market worldwide,” AFL Logistics Chief Executive Officer Juzar Mustan said.
Logistics costs in India is equal to 13 per cent of the GDP, which is significantly higher than the developed nations, where it equates to only around 10 per cent. Even the slightest reduction would result in considerably huge savings for the country, a recent industry study said.