Constitution of GST Working Groups by the CBEC to address concerns of the Trade and Industry
Finalization of the Model GST Laws by the GST Council has set the stage for timely introduction of GST. Most of the issues have been addressed during the drafting stage, however Govt. has constituted sector specific working groups to look into specific peculiarities for smooth and hassle-free transition to the GST regime.
Key Issues for Review by Sector Specific GST Working Groups
i) Services provided between establishments of same entity without invoice or payment in certain sectors with high volumes of transactions with operations spread on a country-wide basis;
ii) Compliance challenges for small and medium sector in an automated environment with end-to-end matching of invoices;
iii) Issues raised by sectors employing large work force and with vast disparity, e.g., textiles;
iv) Special regime in sectors with disproportionate high value with relatively lesser value addition and large number of job workers;
v) Cascading due to the exclusion of certain products from the GST and commitments relating fiscal stability clause in Production Sharing Contracts;
vi) Issues due to existing abatements in transport sector together with compliance challenges;
vii) Critical infrastructure of the country
viii) Exports, including value addition and manufacturing in domestic tariff area (DTA) for export [EOUs and SEZs].
ix) Government services to obtain clarity as to what constitutes a taxable supply for consideration.
List of Sector Specific Working Groups Constituted by CBEC
Recognizing all the above concerns, it has been decided by CBEC to set up the following Working Groups to address the concerns of some key sectors vis-a-vis introduction of GST Regime:
a. Banking, Financial and Insurance Sector: Shri Upender Gupta, Commissioner, GST
b. Telecommunication: Shri Amitabh Kumar, JS, TRU – II
c. Exports, including EOUs and SEZs: Dr Tejpal Singh, ADG, DGEP and Shri Manish Sinha, Commissioner, CX
d. IT / ITES: Shri M. Vinod Kumar, Chief Commissioner
e. Transport and Logistics (Road, rail, air, sea, pipelines, airport, sea port): Shri J. M. Kennedy, ADG DGRI
f. Textiles: Shri Yogendra Garg, Commissioner CX.
g. MSMEs, including Job work: Shri Manish Sinha, Commissioner CX
h. Oil & Gas (Upstream and Downstream): Shri P. K. Jain, ChiefCommissioner (AR)
i. Gems and Jewellery: Shri Reyaz Ahmad, Director TRU
j. Services received and provided by the Government: Sh D. P. Nagendra Kumar, Pr. Commissioner
These GST Working Groups shall have a quick look at the specific key issues of the respective sectors and suggest ways and means to overcome the concerns. They will work in co-ordination with concerned administrative ministries and key Industry bodies/ associations, professionals and other suitable persons.
CBEC has insisted that emphasis of these GST Working Groups should be on procedural simplification and possible rate structure and that they should present their Reports latest by April 10, 2017.