Shillong, May 15: The Garo Hills Autonomous District Council (GHADC) has clarified its decision to engage a tax consultant to represent its concerns before the tax authorities regarding the applicability of Goods and Services Tax (GST) on grants received and services rendered by the Council.
In a press statement, Grahambell A. Sangma, GHADC Executive Member in-charge of Taxation, stated that questions have recently been raised about the applicability of the GST on grants received from the central government for developmental activities in tribal regions.
With the GHADC functioning under the Sixth Schedule to the Constitution of India, the council believes that the services for the developmental activities it provides are exempted under the GST framework. “It is the considered view of GHADC that such services –being provided by or to a local authority – are exempted under the GST framework, similar to exemptions granted to municipalities for comparable services,” Sangma said.
Accordingly, to seek a formal clarification and reaffirm its exemption status on the matter, the council has engaged Sumit Kumar Jain Bohra, a tax consultant, to present its case before the competent tax authorities. “Shri. Sumit Kumar Jain Bohra, as a consultant and advisor with expertise in tax matters, has been engaged to represent the issue appropriately before the concerned authorities,” Sangma informed.
He further clarified that the GHADC currently does not have a qualified tax professional on its payroll to handle such technical matters, and as such there is nothing improper in engaging an external consultant for this purpose.
“This engagement is both necessary and appropriate to ensure the Council’s compliance with applicable tax laws,” he stated.
