The State government is working out a solution to the issues that have emerged out of the new Goods and Services Tax (GST) regime.
A committee, involving various departments, has been constituted to come up with a solution so that the earlier GOs, issued to facilitate investments in the State, could be re-issued along with the amendments suggested. As a matter of fact, the States have been grappling with the issue of customising the GST regime, which is different from the earlier tax structures of VAT and CST.
In the process, several investments have been put on hold until further clarity on the new tax regime, as per sources in the government.
Owing to the new complication, AP had to review several GOs that had been issued in the past one year, Principal Secretary, Industries, S. Solomon Arokiaraj, said. Speaking to The Hindu, Mr. Arokiaraj said, “A committee has been appointed with senior officials from the Industries, Finance, Planning, and other departments to study the issues and come up with solutions. About 30 GOs will be re-issued with minor changes to suit the new GST regime.”
For instance, Switzerland-based Indani Global is one such firm that is awaiting the government’s final nod to initiate investment in a gold and silver refinery near Vijayawada.
The government had issued a GO indicating in-principle agreement and allotment of land over a year ago.
Voluntary disclosures
According to market sources, voluntary disclosures are the only source for the government to calculate tax for several business segments, including that of gold and jewellery. The beneficiary State cannot be identified until a real-time tracking of the transactions is evolved.
At present, the government is trying for a solution to such issues in some of the business segments. The investing industries are also roped in for inputs to aid the exercise of the government.
“We have already started working on the challenge.A solution can be arrived at by March this year. We will start re-issue of GOs once the partnership summit is over by February,” said Mr. Arokiaraj.
