Expect GST & DTC to be tabled in Winter session: Shome

The chairman of the tax administration reform commission, Parthasarathi Shome today told CNBC-TV18 that the Central Board of Excise and Customs (CBEC) has been asked to issue a circular on its Fiat judgment. The circular will bring clarity on the conditions under which excise duty can be levied on cost price.

Talking to CNBC-TV18's Aakansha Sethi, shome also talked about his expectations on implementation of key tax reforms like GST and Direct Tax Code (DTC). He said that the preparatory work on GST and DTC is complete and he expects them to be tabled in winter session of the Parliament. Also Read: States oppose inclusion of petro products, liquor in GST Below is the edited transcript of Shome’s interview with CNBC-TV18 Q: How is the work progressing on the GST front?  A: The technical work on the GST is really complete. The constitutional amendment Bill has also been seen by the legislative department. From the states point of view - that is when the state finance ministers met I was present, some of them have a few questions and the issue therefore is whether we can now in a technical basis place it in Parliament or whether the cabinet might decide to put it a little later. Q: One of the issues that industry has been raising for quite some time now – the Fiat judgement by the Supreme Court where there is taxation on cost of production in case where cost of production is lower than the sales price. What do you think is the solution for this and what is the recommendation that you have made to the tax department? A: I feel that a very clear indication of guideline as to how many years, under what circumstances they should be examining these kind of matters should be called for and a circular should be issued as soon as possible. I am told that there is a committee if chief commissioners looking at this matter. Q: Investors across the world have criticized the government's retrospective action on Vodafone and unfortunately despite the fact that you have submitted a report one still hasn't seen any action on it. Do you expect a conciliation to fructify within this governments term or like several others say these are just delaying tactics by the government and one is not actually going to see any resolution over the next few months? A: I do hope that it can be resolved.