Panaji: Introduction of goods and services tax (GST) will help attract new investments in coastal state of Goa, the Goa Chamber of Commerce and Industry (GCCI) today said.
“With introductionof GST, exemptions regime will come to an end. Thiswill attract new investments to Goa in the manufacturing sector on account of itsbetter infrastructure. This willalsobenefit Goa in the long run,” said GCCI Chairman Narayan Bandekar.
Bandekar said the passage of the Bill has paved the way for the initiation of next steps to ensure implementation of the landmark indirect tax legislation.
“However, this isonlytheinitialstep — next at least 50 per cent of the states will have to ratify it before receiving assent of the President,” he added.
“Thereafter, the GST Council will have to be constituted. Meanwhile, the Empowered Committee would need to develop consensus on complex matters such asstandard tax rates, exemptions, threshold limits, dual administration and others.”
According to GCCI, GST is “a game-changing tax reform” which is expected to end the complex and cumbersome regime of multiple taxes.
“As far as Goa is concerned, I think initially, introduction of GST may result in slightly lower revenues for the state, but over a period, it will stand to gain from introduction of GST,” Bandekar noted.
He reasoned that since Goa is a fairlya large consumingstate, this will be beneficial.
“Goa’s economy is dependent on tourism and is having a number of businesses like hotels and restaurants which sell goods and provide services as a package,” GCCI said.