Internet and mobile industry body IAMAI representing giants like Google, Flipkart, Facebook, and Airtel Money on Monday slammed proposed Goods and Services Tax Bill saying it fails to recognise the digital economy and push back regulatory progress by decades.
“The new GST Bill springs an unpleasant surprise: a ‘forward looking’ Bill that is supposed to modernise Indian governance fails to recognise the Internet and digital economy in India.
It is ironic that on one hand the government is promoting Digital India and Startup India initiatives, on the other hand, the GST seeks to turn the clock back by decades,” IAMAI said in a statement on Monday.
The Internet and Mobile Association of India said the extant service tax profile under proposed GST recognises services like advertising and online information services, online information and database access, Internet telecommunication services and telecommunication services as separate service categories.
However, ‘electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services’ are clubbed under ‘Telecommunication services’ and not even Information Technology, IAMAI said.
“Clubbing all the sectors under telecommunication services reflects a poor understanding of technology, and a willful renouncement of the existence of these sectors in India.
“This renouncement is compounded further in the section listing activities to be treated as ‘supply of service’ and also the new ‘place of supply of goods and/or Services’ section under the new Bill,” the statement said.