Hailing the Goods and Services Tax (GST) rate rationalisation announced last week as a landmark step towards a simpler and more inclusive tax regime, the Federation of Telangana Chambers of Commerce and Industry (FTCCI) has underscored the significance of bringing petrol and diesel under the ambit of GST.
Seeking a clear timeline for inclusion of petrol, diesel, aviation turbine fuel (ATF) and natural gas under the GST framework, FTCCI leaders led by its president R.Ravi Kumar said this remains a long-standing demand of the industry as a measure to eliminate cascading taxes. At present, the products are levied VAT/sales tax by State governments and the rates vary.
Other aspects that the 108-year old trade and industry body leaders sought to highlight, while welcoming the recent GST announcements, include introduction of an optional higher GST rates on which input tax credit (ITC) can be availed for B2B transactions, especially in hospitality. Such a move will help maintain seamless credit chain and prevent input tax leakage.
Review and rationalisation of the compensation cess on coal, in light of the sharp hike in GST to 18%, to avoid excessive tax burden on energy-intensive and core manufacturing sectors and timely issue of clarifications and circulars on the classification of goods and services under the revised GST rate slabs (5%, 18% and the new 40% slab) to reduce litigation and for ensure uniform implementation across States were other aspects FTCCI has sought.
