Sri Lankan imports and exports to be benefitted by India’s new nationwide Goods and Service Tax
The Indian High Commission in Sri Lanka has reportedly stated that India’s new nationwide Goods and Service Tax (GST) system will bring down the cost of imports and exports for Sri Lanka to and from 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,” the High Commission has said in a statement.
“Traders in India can now claim GST paid on imported goods as tax credit from Government of India.”
GST has unified 29 states of India into a common national market for the first time, known as ‘One nation, One tax’.”
According to the High Commission, the 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.”
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, the statement has noted.
The High Commission of India has said it organized an awareness workshop on GST at the request of the Government of Sri Lanka.
A three-member delegation from Central Board of Excise and Customs (CBEC), Government of India headed by Commissioner Upendra Gupta has conducted the workshop.
The High Commission has stated that discussions highlighted the fact that Sri Lankan exporters will now have access to hitherto unexplored markets of various states in India due to the uniform rates of taxation all over India under the new GST Act.
OSL take:
The benefit for Sri Lankan exporters due to India’s new Good and Service Tax as well as the opening up of access to hitherto unexplored markets of various states in India due to the uniform rates of taxation indicates good business opportunities for local exports sector. The benefits enjoyed by Sri Lankan exporters could also be enjoyed by foreign companies setting up businesses in Sri Lanka and using the country to export its goods to India.
| Article Code : | VBS/AT/20180328/Z_6 |