The PWC India report calls for the structure of the commodity and services tax rate over three levels, and to include petroleum products at a tax tax

With the completion of the eight -year commodity and services tax on July 1, industry and experts are awaiting the main reforms in the indirect tax tax. The most prominent new report issued by PWC India has highlighted many of these issues with an invitation to the structure of three prices under the tax and services tax, including petroleum products under the jurisdiction of the indirect tax system.

“At the present time, there are many tax rate panels under the commodity and services tax law. The transition from 4 levels to a price structure of 3 levels would reduce explanatory conflicts, improve tax certainty, and simplify compliance,” said the report entitled “eight years of commodity and services tax: time to think, time for reform.”

A comprehensive review of the commodity and services tax rate is required to reduce the contrast between the rate of commodity and services tax on the inputs in exchange for that on the output, especially for sectors such as electronic vehicles, aviation and e -commerce, which face the accumulation of credit at the expense of the inverted tax structure. The report also called for the settlement of gasoline, diesel, natural gas, and other petroleum products within the tax and services tax.

The Commodity and Services Tax Council is expected to meet soon, and it is possible that it will address the issue of rationalizing the tax structure, which was referred to by the Federation Minister of Finance, Nermalla Sitamman.

The report also suggested that CESS tax may be combined or, if necessary, it may be combined into the structure of the commodity and services rate. “This would simplify the tax system, reduce distortions, freedom of credits that have been cut off and support the ease of doing business,” he said.

Miscellaneous, the report also indicated that one of the main reforms in recent years was to activate the GST (GSTAT), but it has not appointed its members and started its operations yet.

“The activation of GSTAT addresses the long gap in the framework of the appeal, which has increased a burden on the higher courts,” adding that with the official notification of procedural rules, the appointment of the GSTAT president, and the notification of state seats throughout the country, the structure is almost clear.

In general, I highlighted that the next stage of goods and services tax must give priority to rationalizing rates, reducing the prohibited credits in line with the principle of neutrality, expanding the tax base, removing procedural bottlenecks and restoring neutrality in the original and the efficiency of the system.

The report, which benefits from advanced technologies such as artificial intelligence, said: “embracing the best global practices, resolving conflicts, and align the digital economy will be it is very important to reduce litigation and enhance a business friendly environment.”