In a move to widen the tax base, the GST Council has withdrawn the exemption from taxes provided to four regulators including the Reserve Bank of India.
It has not yet clarified the services provided by the regulators and the rate of taxation.
The Council said the exemption is granted to the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority (IRDA), Securities Exchange Board of India (Sebi) and Food Safety and Standards Authority of India (FSSAI) and they would be taxed from July 18.
Analysts said the move by the GST Council would increase the cost of doing business.
Bimal Jain, Leader, A2Z Taxcorp LLP said: “It is a new approach and dimension to expand the tax base but, need clarity on what kind of services by such regulators would be taxable and whether sovereign government services by the regulators are also going to be taxable.” He said it would increase the accountability of the regulators to their customers.
Source from: https://www.telegraphindia.com/business/regulator-services-under-gst-ambit/cid/1874085
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