Sr. No

Sector

Issues/Impact

1

Logistics Sector

a)  Non Allowability of Input Tax Credit on fuel as it is outside the scope of GST

b) Non Clarity on abatement

c) Taxability of Export Freight

d) No concept of Bundled Services

e) No clarity on present system of check-posts and other entry/exit posts

2

Construction Sector

a) Non Clarity on abatement

b) Exemption for infrastructure and other projects??

c) Taxability of Development Rights, FSI & TDR??

d) Eligibility of Input tax credit for construction sector.

3

FMCG Sector

a) Taxability of Stock and Branch Transfers

b) Valuation mechanism for stock and Branch Transfers

c) Status of Area Based Central and State Taxes exemption

d) Taxability and valuation of Free Samples

e) Reconciliation of inward and outward supplies

4

Information Technology Sector

a) Implications for inter-unit services i.e between two branches or head office and branches

b) Status of current SEZ/STPI and other benefits

c) Providing services to various branches of a client in various states of India.

d) Impact on ongoing contracts

5

Pharmaceutical Sector

a) Taxability of Stock and Branch Transfers

b) Valuation mechanism for stock and Branch Transfers

c) Status of Area Based Central and State Taxes exemption

d) Taxability and valuation of Free Samples

e) Reconciliation of inward and outward supplies

f) No clarity on present system of check-posts and other entry/exit posts

g) Power to challenge the transaction value.

h) Continuation of MRP based assessment.

6

Aviation Sector

a) Segregation of journey for place of supply

b) All taxes levied by other authorities to be taxable.

c) Taxability of lease/Purchase of aircrafts

7

Other Common Issues

a) Very low threshold limit of 10 lakhs

b) No concept of centralised registration

c) Suo Motu cancellation of registration in various scenarios

d) Filing of 3 returns every month (36 every year). Besides it annual return, TDS Returns and ISD Returns are separate. The returns are to be filed for each registration.

e) Payment of GST on Reverse charge on goods/services

f) Concept of TDS /TCS in GST

g) Permission of Commissioner to send goods on job work without payment of tax.

h) In case of wrong payment of CGST/SGST as IGST and vice versa , amount needs to be paid again before claiming refund.

i) Adjustment of refund with pending dues

j) Pre-deposit of 10 % on disputed amount, interest and penalty

k) Lower prosecution limit.

l) Collection of tax at source by e-commerce operator.