What does Parag Mehta, partner at N A Shah Associates, have to say about the pre-budget expectations of GST?

BY A STAFF REPORTER 

There has been a long-standing demand to bring energy under GST and currently one of the major expenses for the logistics and transport sector is the cost of fuel. Since it is not covered under GST, they are unable to take ITC, due to which the cost for all has increased. Being not covered under GST, the cost of transportation is increasing which is imposed on trade, resulting in an increase in the prices of goods. Ultimately it is the ultimate consumer who bears the aforementioned growth costs. If energy is brought under gst, then the cost of transportation will be reduced and if its benefits are passed on to the consumers, then the cost capacity will increase, which will benefit the economy to a great extent. A one-time amnesty scheme has been introduced for old service tax/excise issues as well as current GST issues. After the introduction of GST, there are various explanatory problems, frequent corrections and unintended errors. There are also various activities under the previous Service Tax/Excise Act. This has resulted in a huge demand for interest and penalties in the trade as well. A one-time amnesty helps trade as well as at various levels.