It is true that Modi Government is on the path of implementing India’s biggest indirect tax reform, GST, in several decades, but Google India appears to be unhappy with the Goods and Services Tax. According to an ET report, Google India CFO has met Indian tax officials expressing resulting difficulties in state-wise separation of cloud services.
It is reported that Google India have told the government officials that international service providers may be compelled to reduce India operations with the GST implementation where state-wise registration would interfere with compliance issues. Google has further added that this would effect as an “entry barrier” for new service providers. Google explained that international service providers may change the process of operations out of India if the state-wise registration is employed.
In the meantime, in its target to meet the deadline of April 1, 2017 for the implantation of GST, the government is likely to advance the winter session of parliament to achieve necessary legislations passed, which may be advanced by two weeks. The winter session of parliament normally starts in the 3rd or last week of November, which may be convened right after the end of the festive season. Government officials have disclosed to PTI that an early session may be of help in getting the CGST or Central GST and IGST and integrated GST legislations passed in time to clear the way for timely execution of GST.
GST would include a number of state level taxes and is anticipated to greatly diminish tax evasion in the country’s economy. The GST implementation date of April 1, 2010 was initially announced in the financial budget of 2006-2007 and since then it has consumed over 10 years for GST Bill to be passed.