The CBIC chief has also said that he is confident of seamless rollout of new GST rates from Sep 22, as the industry has 2 weeks to adjust back-end systems.
New Delhi:Day after the announcement of Union finance minister’s next-generation goods and services tax or GST rollout Pan India, Central Board of Indirect Taxes and Customs (CBIC) chief Sanjay Kumar Agarwal on Thursday said that the GST department is coordinating with industry to upgrade software for smooth, glitch-free rollout of overhauled tax structure in the country. The CBIC chief has also said that he is confident of seamless rollout of new GST rates from Sep 22, as the industry has 2 weeks to adjust back-end systems.
The GST Council, comprising the Centre and states, have approved re-hauling the GST structure effective September 22, making it a two-slab of 5 and 18 per cent and a 40 per cent rate on sin and ultra luxury items. Currently, the GST is a 4-tier structure of 5, 12, 18 and 28 per cent. Also, a compensation cess is levied in the range of 1-290 per cent on top of the 28 per cent rate.
“The industry need not worry about accumulation of input tax credit (ITC) on goods in which tax rates have been reduced, as they can use the accumulated credit to pay taxes. A lot of rate changes have happened. A new rate of 40 per cent has been introduced. So, we are confident that the time, which is available to us, is about two weeks. We will be fully prepared for the new levies, new roll outs,” Agarwal told a news agency.
Asked about industry concerns about blocked ITC, Agarwal also said that the dealers of such goods items would be entitled to claim the full ITC on whatever rate they have paid taxes on inputs. “When they sell the goods or make the supplies, from September 22 onwards, new rates will apply so they can utilise the ITC, which is available to them for making the duty payment while filing returns,” Agarwal said.
