The new GST system will bring down
the cost of imports and exports for Sri Lanka from/to India. The traders based
in Sri Lanka will not have to bear the cost of any indirect tax except the
basic customs duty and Social Welfare Surcharge, as applicable. Traders in
India can now claim GST paid on imported goods as tax credit from Government of
India, says an Indian High Commission press release.
The Indian High Commission issued
the statement following an awareness workshop held in Colombo recently. The
statement said at the request of the Sri Lankan Government, the Indian High
Commission in Colombo organized an awareness workshop in Taj Samudra, Colombo
on Goods and Service Tax (GST) on March 23.
A three-member delegation from
Central Board of Excise and Customs (CBEC), Government of India headed by
Commissioner Upendra Gupta conducted the workshop. Ms. Sonali Wijeratne,
Director General, Department of Commerce, Government of Sri Lanka and Mr.
Arindam Bagchi, Deputy High Commissioner of India were also present.
Several officials from various
Ministries/Departments of Sri Lanka, representatives of the trade chambers,
members from the industry etc. were also present. The discussions highlighted
the fact that Sri Lankan exporters will now have access to hitherto unexplored
markets of various states(provinces) in India, thanks to uniform rates of
taxation all over India under the new GST Act.
Launched in July 2017, GST is hailed as India’s
biggest tax reform since independence. GST has resulted in economic integration
of India, by subsuming more than a dozen State and Central levies into one tax.
GST has unified 29 states of India into a common national market for the first
time. [One nation, One tax]. GST has also substantially increased ease of doing
business in India. GST has mitigated cascading effects in taxation as well as
ensured transparency, certainty and simplicity.