Inevitable tax reform?

Tax has always been a dreaded word, and now with the inclusion of a new terminology — GST (Good and Services Tax) has made the situation sombre. GST, which is expected to be implemented from April 1, 2017, aims to replace multiple state and central levies with a single tax. The country is inching closer to the implementation of the Goods and Services Tax (GST) regime, as the Lok Sabha unanimously passed the amendments to the GST Bill recommended by the Rajya Sabha.

GST will affect various sectors differently. The travel and hospitality industry has a plethora of taxes, both on the central and state level, GST may simplify compliance procedures and reduce multiple taxes. However, it is unclear whether various benefits available under the existing Foreign Trade Policy will continue under GST. Ultimately, GST should have a positive impact on the industry and should not affect agents adversely. We hope that the conventions and meets that are coming up in the next few months will discuss this issue in detail.