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IMPACT OF GOODS AND SERVICE TAX ON TRANSPORT SECTOR


CA. Rajat Mohan

 

1 Introduction

Transport services, is used both as intermediate input and in final consumption. The transport equipments are also subject to multiple taxation at both Central and State level. The present regime leads to cascading effect of embedded taxes on the downstream industry which do not get rebated thereby leading to enhanced cost for such industries. Hence, it is imperative to rationalize the taxation regime for transport services.

 

2 Task Force

In view of the above Task Force recommended that:

  1. The tax on vehicles and the tax on goods and passengers levied by the State Governments should be subsumed in the GST.
  2. All transport equipments and all forms of services for transportation of goods and services by railways, air, road and sea shall be comprehensively taxed under GST regime.
  3. The tax regime for the transport equipments and transport services should be the same as in the case of any other normal good.
  4. Present practice of levying higher rates of taxes on vehicles should not be followed under GST.

 

Best regards

Rajat Mohan

B.Com(H), A.C.A., D.I.S.A.

 

MOHAN AGGARWAL & ASSOCIATES

Chartered Accountants

F-31 D.B. Gupta Market, Karol Bagh, New Delhi

Office Phone: 011-23672609 / 23535809

Mobile: 9910044223

Web url: www.delhicamohan.com




Category VAT, Other Articles by - Member (Account Deleted) 



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