GST final draft to retain clause on services sector

Neeraj0126 Jul, 2017Business

The goods and services tax (GST) council is likely to retain a clause in the law that will require service providers to register in every state where they operate, despite recent representations from various Union ministries and telcos, banks, and insurance firms for a single registration system in chartered accountants firm. At present, service providers benefit from a single centralized registration system for paying service tax�a tax levied and collected by the Union government. However, under the GST regime, even states will get the powers to collect tax on services and the service providers will have to register in every state where they have operations in direct foreign investment in India.