Bengaluru: In the backdrop that GST would be implemented with effect from 01.07.2017, Bangalore Chamber of Industry and Commerce (BCIC) on Friday submitted its pre-budget memorandum urging the Chief Minister Siddaramaiah to take certain steps that would augur well for the State Government and would keep the State Government ahead on its path for implementation of GST. The proposals are with a view to make the process of marching into GST, a smooth one.
Thyagu Valliappa, President, BCIC urged the State Government: “To specifically focus on infrastructure outside of Bangalore, more particularly, in the North-Karnataka region to enable flourishing of MSMEs. This would ease the pressure on infrastructure in Bangalore and given an opportunity for MSMEs, both within and outside Bangalore to expand its operations and move on the growth path, much faster.“
Keeping its focus on the commercial tax matters, BCIC requested that the sales to SEZs should be exempt from payment of VAT, in lieu of the current refund route. It suggested that this change would not impact the State revenues, but will certainly do away with the otherwise avoidable paper work and administrative time. It highlighted that this would also be in line with the proposed GST framework, wherein supplies to SEZs are zero-rated.
On the administrative side, BCIC recommened that filing of appeals for assessments involving non-submission of statutory forms (Form C, Form I, Form F and Form H) should be allowed without the requirement of pre-deposit of 30% of the disputed taxes. This would enable the industry to mitigate the hassles arising out of blockage of cash in form of pre-deposits and would provide the much needed support to transition into GST.
Keeping its focus on making the process of transition into GST a smooth one, it also submitted that the operational issues arising in respect of statutory forms should be eased and that revised returns under the VAT, CST and Entry tax should be allowed to be filed suo-motu by the dealers without having to approach the LVO (Local VAT office) for enabling the filing. This would cure the operational hassles of mis-match between the returns and the e-upass, thereby making it easy to obtain statutory forms.
In its concluding remarks, BCIC reiterated that these proposals would enable the State and the dealers to march into GST with minimum baggage of assessments and appeals under the existing tax laws.
Highlights of BCIC’s submissions to the state government:
1.Reduction in VAT and Road Tax on Hybrid vehicles
2.Reduction of CST rate to 1% against Form Cs
3.Special CST rate for IT products
4.Exemption to suppliers selling goods to SEZ Units
5.Exemption from VAT on Industrial Canteens in specific cases
6.Rate of TDS on Government contracts should be equal to the tax payable
7.Works Contracts – Composition Scheme, Builders and Developer
8.One-time remission of interest and penalty
9.Promoting Public Private Partnerships (PPP)
10.Issues relating to input tax set-off
11.Removal of input tax restriction for goods sold below purchase price
12.Option to pay tax on MRP or on the actual selling price on pharma goods
13.Uniformity in application of Partial Rebating and Special Rebating Schemes
14.Relaxation from submission of certain documents for Registration
15.One-time remission of interest and penalty
16.Promoting Public Private Partnerships (PPP)
17.Issues relating to input tax set-off
18.Removal of input tax restriction for goods sold below purchase price
19.Option to pay tax on MRP or on the actual selling price on pharma goods
20.Uniformity in application of Partial Rebating and Special Rebating Schemes
21.Abolition of entry tax on machine tools used by manufacturers.