New Delhi: Vedanta Resources not suppose substantive input tax impairment following GST reforms. Answering to a query whether his corporation hit by input tax credit mutilation like ONGC due to the non-insertion of petrol and diesel under the GST reform, Anil Agarwal, Vedanta Resources Chairman, conveyed on Thursday subsequent to meeting Finance Minister Arun Jaitley that, we are still learning the GST, but I don’t think the input tax credit mutilation is going to influence us like that.
As declaring its financial year 2017 results, Indian Oil Corporation conveyed that it was looking at a stranded input tax credit of Rs 5,000 crore. ONGC representatives saw a ‘major hit’ from the mutilation. Oil India further added that it was looking at an impairment of Rs 175 crore. The oil and gas business approximations as additional indirect tax load with stranded costs around Rs 25,000 crore due to the non-insertion of petroleum products under the GST.
Responding to queries on the rising retrospective tax liability on Cairn Energy Plc, Vedanta chief further conveyed that, the Congress administration has put in retroactive tax, BJP is devoted that retroactive tax will not be there. I am working with Cairn Energy so they can come and make a resolution.
There is no point having proceedings with the Indian administration everybody should come and settle the case of retrospective taxation. At the gathering, Jaitely asked trade and industry spokesperson to guarantee that all advantages occurring due to execution of GST from July 1, 2017 are passed on to the customers in a transparent manner.
Commenting this at the gathering, Finance Minister conveyed that overall occurrence of tax regime following execution of GST will be less particularly in case of the customer’s goods than the current occurrence of tax, so, it is crucial on part of the trade and industry to pass on these advantages to the consumers at large.