Bring In Real Estate under GST, also Declare Measures for Textile and MSME since GST still has Negative Impact on the Two : PHDCCI
December 30, 2018
BRING IN REAL ESTATE UNDER GST, ALSO DECLARE MEASURES FOR TEXTILE AND MSME SINCE GST STILL HAS NEGATIVE IMPACT ON THE TWO: PHDCCI
PHD Chamber of Commerce and Industry has urged the GST Council to bring in real estate within the ambit of GST, given its criticality from mass consumption point of view as also provide relief measures to industrial sectors like textile and MSME since the two are still enduring the overall negative impact of GST regime.
The Chamber has also recommended that rate of GST on health insurance be brought down to a minimum level of 5% given the significance of health insurance to ensure common people avail the facility of health insurance as well as reiterated its demand that all petroleum products should be brought under the ambit of GST regime.
In a statement issued here today, President, PHDCCI, Mr Rajeev Talwar emphasized that real estate is a critical economic activity from all economic and social angles including its contribution to national GDP and therefore, the need for its inclusion within the GST ambit is absolutely essential and it would make an imperative economic sense if preparations for real estate entry into GST ambit are taken with due diligence even at next GST Council Meet. “Delay on this front should be avoided and the issue needs a priority consideration”, argued the PHDCCI President.
He also stressed that since PHDCCI largely represents the MSME segment, it would thus seek relief measures be provided to textile and MSMEs which are under severe negative impact of GST regime explaining that such measures should be announced by way of providing exemptions, reduction in rate or unrestricted input tax credit or refunds as GST has adversely impacted textile and MSME negatively due to various reasons such as removal of area based exemptions and increase in rate of duty.
Mr Talwar elaborating on GST rate on health insurance argued that rate of GST on health insurance should be reduced to a minimum level of 5% from prevailing 18% rate as this would ensure common people to avail the facility of health insurance at an affordable price.
In addition, he reminded the government that the non-applicability of GST on petroleum is another concern which according to PHDCCI needs redressal as petrol, diesel, natural gas, aviation turbine fuel are excluded from the levy of GST. Such products continue to attract excise duty as well as central sales tax including value added tax. This has resulted in cascading of taxes and increased cost to companies which use such products as inputs for manufacturing of products.
Therefore, time has come for the GST Council to immediately bring in all petroleum products under the ambit of GST regime, concluded Mr Talwar.
Koteshwar Prasad Dobhal