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It is a great pleasure in presenting our readers another insightful issue of Vision: Journal of Indian Taxation covering important areas in Indian taxation, tax laws and public finance. With the implementation of major indirect tax reform in the form of Goods and Services tax (GST) in the country in the year 2017, it is important to understand its implications for various sectors and for promotion of business and growth. Besides, the change in tax proposals and tax laws has implications for revenue and economy which needs to be analysed. Papers in the earlier issues of Vision as well as in the current issue have been deliberating on these areas. The papers in the current issue mainly in the broad domain of Indian taxation and tax laws deal with impact of GST on supply chain management, financial sector, textile sectors and educational charitable institutions, revenue impact of inclusion of petroleum products under GST, ambiguity in tax laws in addressing international tax dispute, perspective on Indian thin capital rules and implications of proposal related to Dividend distribution tax in Union budget 2020-21.
The paper by Chandra Kant Parmar and Partha Pratim Ghosh make an analysis of the revenue impact of including petroleum products under GST, to both the Central and state governments. They observe serious adverse implications of this inclusion on revenues for both State and Central Governments. The paper by Kuldeep Kumar Dhar and Utkal Khandelwal tries to critically analyse the impact of implementation of goods and service tax on supply chain management taking perspectives from the literature. They observed that GST policy implementation has made the companies to transform and redesign their logistic processes to automate and boost the productivity of supply chain.
The paper by Rupal Chhaya, Srishti Sneha and Anisha Routray evaluates the implication of GST policy on financial sector in India from a comparative perspective with developed nations. They argue that the rate of zero GST on selected financial sector services particularly banking services in some developed countries make people easier to access to loans and it could turn around investment climate and boost economy and similar policy is required for India to boost the economy. Yashraj Dokania in his paper “Educational Institutions under Trust and its taxation- A critical analysis” argues for simplification of GST for educational charitable institutions in order to make them available input credit for tax paid on purchases such as equipment and infrastructure and for simplifying the process of filing return for these institutions.
Another interesting paper in this issue by Ajit Kumar Singh in the context of Indian tax laws highlights the interaction of section 153 vis-à-vis section 144C and reviews the judicial pronouncements and interpretations in international tax disputes. The paper by Akshay Saxena provides a critical perspective on the “Indian thin capitalisation rules” by analysing its aims, design, impact on curbing debt bias and possible alternatives to thin capitalisation rules.
The paper entitled “Abrogation of Section 115-O: Reinforcing the classical system of dividend taxation” by Shivangi Pandey evaluates the pros and cons and the implications of tax proposal of reinforcing of Dividend distribution tax proposed in Union budget 2020-21 on Corporate sector in the prevailing situation of pandemic. The paper by Greeshma Manoj and S. Muraleedharan, on the basis of primary data, examines the effect of Goods and Services Tax implementation on textile traders in Kerala. They have observed that though there is increased tax compliance in post GST regime, but no significant improvement in the business performance is realised. There was a delay in getting the input credit tax which needs to be addressed. However, there is a fall in the prices of product and transport time in the post GST period.
I sincerely hope this issue of Vision will be of great interest to our readers and policy makers and we thank all stakeholders for their support and continued patronage. I also hope that the Vision continues to get contributions from diverse and unexplored areas of Indian taxation, tax laws and applied domains of public finance.
Dr. M. M. Sury
Dr. Prasant Kumar Panda
Editors