Modi government may be on its way to implement India’s biggest indirect tax reform, GST, in several decades, but Google India seems unhappy with the Goods and Services Tax! According to an ET Now report, Google India CFO has met top Indian tax officials, citing resulting difficulties in state wise segregation of cloud services. “International service providers may be forced to scale down India operations on GST rollout,” Google India is reported to have told the government officials. “State-wise registration will cause compliance issues,” Google has said, adding that this will act as an “entry barrier” for new service providers. “International service providers may rejig operations out of India, if state-wise registration is implemented,” Google reportedly said.
Meanwhile, in its bid to meet the stiff April 1, 2017 implementation deadline of GST, the government is likely to advance the Winter session of Parliament to get necessary supporting legislations passed. The Parliament session may be advanced by two weeks. The Winter session which normally starts in the third or last week of November, may be convened as soon as the festive season ends. Government officials have told PTI that an early session may help in getting the Central GST (CGST) and Integrated GST (IGST) legislations passed on time, hence paving way for timely implementation of GST.
GST will subsume a number of state level taxes and is expected to greatly reduce tax evasion in the economy. A GST implementation date of April 1, 2010 was first announced in Budget 2006-2007. Since then it has taken over ten years for the GST Bill to be passed.