NEW DELHI: EY has released a book on India's GST journey titled 'GST Transformation: The Road Ahead'. The book has delved into the topic of how to make it more simple and responsive to the needs of the businesses and government. It explores the implementation of reforms to make all facets of GST law and processes more efficient. This in turn will raise productivity and reduce prices for businesses. This coupled with a clear manufacturing strategy can attract global investments, create jobs, and make India a large manufacturing economy by 2025-26.
In a statement, Sudhir Kapadia, Partner, Tax & Regulatory Services, EY India, said, “Our book is an effort to capture the benefits and challenges of this journey while incorporating critical feedback and recommendations from all key stakeholders. As this reform completes five years, it is time to look ahead, deliberate and decide on necessary changes required to streamline the five-tier tax rate structure, availing of input tax credits, and inclusion of the remaining items in GST.”
The book recommends the policy measures required to reform GST hinging on revenue buoyancy, world-class dispute resolution, institutional strengthening, and enhancing the ease of doing business. In terms of tax simplification measures, there is a need for government intervention on the legislative front and regular notifications needed to avoid litigation. It draws out a discussion of having a dispute resolution system to help in ease of doing business.
It also delves into a sector-wise impact analysis and suggests the inclusion of petroleum products, electricity, and real estate within the ambit of GST to make manufacturing more competitive.
Some key sectoral recommendations:
While electricity can be taxed at 5% uniformly across the supply chain, petroleum products at 28% and real estate (land and constructed building) at 12% with seamless credit eligibility, will help the country immensely by incentivizing investment and enhancing demand for consumption.
The book also highlights the various disputed areas where an express clarification by the lawmakers will go a long way in settling the matters and eliminating unwarranted litigation. Decriminalizing minor offences and providing forthright clarification on contentious industry (or trade) issues are also needed.
In a statement, Sudhir Kapadia, Partner, Tax & Regulatory Services, EY India, said, “Our book is an effort to capture the benefits and challenges of this journey while incorporating critical feedback and recommendations from all key stakeholders. As this reform completes five years, it is time to look ahead, deliberate and decide on necessary changes required to streamline the five-tier tax rate structure, availing of input tax credits, and inclusion of the remaining items in GST.”
The book recommends the policy measures required to reform GST hinging on revenue buoyancy, world-class dispute resolution, institutional strengthening, and enhancing the ease of doing business. In terms of tax simplification measures, there is a need for government intervention on the legislative front and regular notifications needed to avoid litigation. It draws out a discussion of having a dispute resolution system to help in ease of doing business.
It also delves into a sector-wise impact analysis and suggests the inclusion of petroleum products, electricity, and real estate within the ambit of GST to make manufacturing more competitive.
Some key sectoral recommendations:
While electricity can be taxed at 5% uniformly across the supply chain, petroleum products at 28% and real estate (land and constructed building) at 12% with seamless credit eligibility, will help the country immensely by incentivizing investment and enhancing demand for consumption.
The book also highlights the various disputed areas where an express clarification by the lawmakers will go a long way in settling the matters and eliminating unwarranted litigation. Decriminalizing minor offences and providing forthright clarification on contentious industry (or trade) issues are also needed.
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