With the goods and services tax (GST) set to be rolled out from July 1, the government has set up 10 working groups to address the concerns of industry.
The groups cover banking, telecom, exports, information technology, transport, textiles, MSMEs, gems and jewellery and services received and provided by the government. The groups have been asked to give suggestions on procedural simplifications and possible rate structure. The deadline of submitting reports by the groups is April 10.
Some of the issues that would be tackled by the groups include how to handle services provided between establishments of the same entity without invoice or payment in certain sectors with high volumes of transactions when operations are spread across the country.
The other matter is compliance challenges for small and medium sector in an automated environment with end-to-end matching of invoices.
Issues raised by sectors employing large workforce and with vast disparity such as textiles will also be addressed.
Oil industry's concerns due to exclusion of its certain segments would also be deliberated on and those may include production sharing contracts.
Pratik Jain of PwC said, "The move will provide much needed clarity to the industry on sector specific issues. However, the timeline for submitting the report looks tight."