Home / Knowledge / News / Textiles / Budget paving way for moving into GST regime
Budget paving way for moving into GST regime
04
Mar '16
The Union Budget 2016-17 is aimed to bring the huge chunks of industry including area-based exemptions together with SSI, edible oil, textile sectors and others into the tax net in a most easy manner, a top Finance Ministry official said at an Assocham event in New Delhi.

“Out of the GDP Rs 110 lakh crores and manufacturing sector contributing about 17 per cent to it, we have huge chunks of industry which is out of the net,” said Najeeb Shah, Chairman, Central Board of Excise and Customs (CBEC) while inaugurating a post-budget seminar organised by Assocham.

“Area-based exemptions, it is one lakh plus crore which is out of the net, SSI, edible oil, textile sector, these are huge chunks of industry,” said Shah.

“If we are talking of GST, we are now talking of all these sectors having in to move towards the tax net, how else are we going to have a GST?” he asked.

He expressed surprise at tax exemption demands by the industry even with the GST on the anvil.

“The industry supports GST but very, very surprisingly, keeps expecting and wanting exemptions, the two do not go together, every time there is a break in the CENVAT chain, you have a problem, you have tax sticking on to some products, which the next man has to bear and there is no reason why you should bear it,” added Shah.

The CBEC boss said such a line of thinking was behind decision to slowly bring these sectors into tax net and the government believes these are essential steps to move towards GST.

Talking about the CENVAT credit rules, he said that more than 10-12 per cent of the litigations were because of two specific rules in the CENVAT i.e. Rule 6 and Rule 7, that have now been completely revamped. “We have tried to simplify them to the extent possible.”

“We are expecting a hit of more than Rs 1,000 crores only because of the CENVAT credit rule changes, in terms of simplification, we thought it is something essential, because the cost of litigation was much more than the revenue which we are otherwise getting,” he said.

According to Shah, the simplified processes will add to ease of doing business and reduce transaction costs.

“The focus right through the budget has been on simplification, on ensuring that the taxpayer gets better value for money, gets better services from us and has lesser interaction with us,” said Shah.

He also said that his department has now taken the move to withdraw all old pending prosecutions.

On the customs side, Shah said that deferment of payment of duty had been permitted. “These are sections which have been amended in the Customs Act which permits removal of goods without payment of duty, the rules and details will be finalised in the course of next few weeks, basically we want to club this along with a concept of an accredited client, a scheme which we already have.”


Must ReadView All

Courtesy: Pexels

Textiles | On 17th Jul 2018

Trade wars could depress medium-term growth prospects: IMF

The recently announced and anticipated tariff increases by the US and ...

Courtesy: Mat Brown from Pexels

Textiles | On 17th Jul 2018

India increases import duties on textiles & apparel

The Government of India has increased basic customs duty on several...

Luis Quijano

Textiles | On 17th Jul 2018

US varsity student cultivates bacterial cellulose in lab

Luis Quijano, a student at the Liberty University in Lynchburg,...

Interviews View All

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search