Representation on the issue of GST by SIMA and other association
Dear Industrial Colleagues,
As we are aware that, Government of India, is committed to introduce GST i.e. Goods Service Tax across the country and introduction of GST is very vital issue if we have to compete in global market. The main object of the introduction of GST is to have uniform indirect tax structure throughout the country. The GST is an indirect tax system that would subsume various Central and States indirect taxes and apply on the supply of goods and services. In The Constitutional (122nd Amendment) Bill, 2014 (GST), it is proposed to have floor rate within which Central Goods and Service Tax (CGST) or State Goods and Services Tax (SGST) may be levied on any specified goods or services or any specified class of goods or services by the central or a particular State Government as the case may be. The Central Government has also proposed to levied GST on banking services, the GST Network (GSTN).
Apart from this, it is proposed in the bill, which empowers the Centre to levy an additional tax, up to 1% on the supply of goods in inter-state sell. The tax will be given to the State from where the supply of the goods originates.
As an Industrial Association, we welcome the introduction of GST across the country, as the indirect tax structure shall be uniform across the country, it will provide uniform level playing field.
At present the said GST structure are in operation, in most of advanced countries around the world and it is proved that such tax structure is very transparent and simple and so has been adopted by other countries. The GST regime across the country shall eliminate the existing complexity tax structure and shall provide very simple, transparent tax regime.
While welcoming the GST regime, it is felt that the proposed levy of an additional tax up to 1% on the supply of goods in inter-state sell, shall adversely affect the development of industrial sector of our territory of DNH and we shall not be able to attract new investments, and it will be very difficult for us even to retain the existing industries. Because as we all know that, for our raw material requirement we depend upon other states as we don't have local resources. So this inter-state purchase shall attract additional tax up to 1% and at the same time on inter-state sell of our finished goods we shall have to pay additional tax up to 1%. This additional tax burden up to 2% will have huge impact on the industries of Dadra & Nagar Haveli in comparison to their competitors of other States. And thus, the industries of Dadra & Nagar Haveli will certainly loose level playing field.
After detail study in the matter, Silvassa Industries & Manufacturers Association prepared a joint representation along with two colleague associations and decided to approach Government of India to find out way-out from the situation, so that growth of the industries in Dadra & Nagar Haveli can be sustained.
Under the leadership of Shri Natubhai G Patel, Hon'ble Member of Parliament, Dadra & Nagar Haveli and Shri Lalubhai Patel, Hon'ble Member of Parliament, Daman & Diu, all the three association of DNH and Daman Industries Association approached to Shri Arun Jaitleyji, Hon'ble Finance Minister, GOI, Shri Rajnath Singhji, Hon'ble Home Minister, GOI and Shri Haribhai Chaudhary, Hon'ble Minister of State for Home Affairs, GOI along with the representation on issue.
The joint representation was submitted to the Hon'ble Ministers and it was explained that, due to this additional tax up to 1% shall caused heavy damage to the growth of both the territories and existence of the industries shall be under threat.
We are pleased to inform you that Shri Arun Jaitleyji, Shri Rajnath Singhji and Shri Haribhai Chaudharyji heard us with patience and have assured that, the interest of UTs shall be taken care and it will be ensured that the industries of territories will have level playing field.
We are sure that, as the bill is pending before Hon'ble Rajyasabha, during the discussion and before finalization of the bill, the interest of UTs, and specifically interest of industries functioning there, are protected by Hon'ble Ministers and Hon'ble Members of Rajyasabha.
The scanned copies of the representation submitted to Shri Arun Jaitleyji, Hon'ble Finance Minister, GOI, Shri Rajnath Singhji, Hon'ble Home Minister, GOI and Shri Haribhai Chaudhary, Hon'ble Minister of State for Home Affairs, GOI are enclosed herewith.
On behalf of colleague industries, we convey our sincere thanks to Shri Natubhai G Patel, Hon'ble Member of Parliament, Dadra & Nagar Haveli, Shri Lalubhai Patel, Hon'ble Member of Parliament, Daman & Diu , as they lead our delegations and have taken a keen interest in maintaining the growth of industries in these area.
We are also thankful to Shri Arun Jaitleyji, Hon'ble Finance Minister, GOI, Shri Rajnath Singhji, Hon'ble Home Minister, GOI and Shri Haribhai Chaudhary, Hon'ble Minister of State for Home Affairs, GOI for sparing their valuable time and gave patience hearing on the issue.
Click here to watch the photographs took during the meeting with Hon'ble Ministers
We thank our industries colleagues for their support and participation.
Thanking you,
With regards,
For Silvassa Industries & Manufacturers Association,
Narendra Trivedi,
Secretary
