Indiaâ€™s GST lowers costs for Sri Lankan traders
ECONOMYNEXT – India’s new nationwide Goods and Service Tax (GST) system will bring down the cost of imports and exports for Sri Lanka from and to India, the High Commission of India said.
“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,” it 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’.
GST has also substantially increased ease of doing business in India, the High Commission said.
“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 said.
The High Commission of India 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 conducted the workshop.
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.
(COLOMBO, March 27, 2018)