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Northeastern region not fully prepared for GST

The Northeastern region of the country runs the risk of falling out of the ambit of the  Goods and Services…

Northeastern region not fully prepared for GST

Representational image (Photo: Images)

The Northeastern region of the country runs the risk of falling out of the ambit of the  Goods and Services Tax (GST) regime since it lacks bandwidth and internet connectivity to stay connected with GST servers. 

As soon as Revenue Secretary Hasmukh Adhia returned from a visit to the Northeast to review the IT preparedness of the GST structure, he asked the telecom ministry to immediately improve the necessary internet infrastructure needed for the nation-wide smooth roll-out of GST on 1 July. 

Adhia said  there is a serious shortage of optical fibre cables (OFC) , leading to delay in completion of work. In addition, the agencies doing work are not following the norms of depth at which the OFC cable should be laid and as a “result there are many instances of cutting OFCs in road repair work. This creates problem for connectivity”.

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It was also found that OFC connectivity is available only in seven out of 20 districts. The shortage of OFC cables is causing delay in completion of work within the stipulated time. There have been instances of delayed response from the Border Roads Organisation for repairing the damaged cables.

GST implementation would require a super speed internet connectivity among all GST servers and state VAT data centre along with district VAT office and state VAT office as all the data processing of return filings will be done online.

Dealers will also have to upload invoice-wise details online.

The GST Council is set to hold its next meeting in Srinagar on 18-19 May where it will decide on fitment of rates on various goods and services.

Most services will attract a service tax of 18 per cent under the GST regime. Adhia said it will not increase the tax burden on services. 

The finance ministry official said the tax rate on precious metals like gold and silver would be considered only after the entire exercise of other goods and services gets complete. 

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