Inputs on upcoming GST council meeting by Karthik Mani, Partner & Leader - Indirect Tax : South, Tax & Regulatory Advisory at BDO India
Below the Inputs on upcoming GST council meeting by Karthik Mani, Partner & Leader - Indirect Tax : South, Tax & Regulatory Advisory at BDO India
"The proposal to grant export status to work done for overseas customers, even where the goods do not leave India, will be a significant boost for emerging industries such as semiconductors and electronics. Indian contract manufacturers often process materials for overseas companies and then deliver the finished goods within India on the customer's instructions. Treating such transactions as exports, with the place of supply as the overseas customer's location, will remove tax cascading and strengthen India's new-age manufacturing sector. Extending the same treatment to repair, testing, storage and job work will further position India as a competitive global manufacturing hub. Further, the proposals to unblock input tax credit on employee group insurance, free samples, and goods destroyed on expiry, along with faster refunds of accumulated credit, will ease working capital pressures in sectors such as pharma and FMCG and reduce avoidable litigation."
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