GST to attract new investments in Goa
The introduction of goods and services tax (GST) will help attract new investments into the coastal state, said GCCI Chairman Narayan Bandekar.
“With the introduction of GST, exemptions regime will come to an end that will attract new investments into Goa, majorly in the manufacturing sector on account of the state’s better infrastructure. This will benefit Goa in the long run,” he said recently while interacting with the media.
Bandekar said the Bill could pave the way in the initiation of other landmark changes such as the implementation of the indirect taxes legislation. These are only the initial steps taken by the government. However, the Bill will actually be strong after 50 percent of the states ratify it before the President gives his assent. Thereafter, a GST Council will be constituted and the Empowered Committee will have to bring about a consensus on complex matters such as dual administration, standard tax rates, threshold limits, exemptions, dual administration and others.
Commenting on the news story, Sandip Bhandare, Senior VP, GCCI and Head of the Taxation Committee of GCCI told The Dollar Business over the phone, “Goa is not a manufacturing state, like Tamil Nadu or Karnataka but a tourist state that benefits more from tourism. In other words, almost 30 percent of Goa’s revenues come from tourism related services, such as hotels and restaurants that provide services to the tourists. Goa is a consuming state and less of a producing one.”
“The 18 percent tax limit in GST, as Chidambaram suggested in the Parliament, will be more helpful to the service sector. Since there was also speculation that the government could consider levying around 27 percent, this could, in the long run, be helpful to Goa as the state too could turn to manufacturing by doing away with the service tax, sales tax and customs duty. If the government sticks to 18 percent then there may not be much of gain for the state but if the range is anywhere between 22-27 percent, it would definitely be helpful to the State,” he said.