Goods and Service Tax (GST) Council cleared the pending rules, including transition provisions and returns, with all states agreeing to a July 1 rollout of the new indirect tax regime. GST Council had last month fitted over 1,200 goods and 500 services in the tax brackets of 5, 12, 18 and 28%.
15th Meeting of GST was scheduled to decide tax rate of 6 items including gold, textiles and footwear. As for the transition rules approved by Council, the industry had been demanding some relaxation of the provision of deemed credit.
The draft transition law provided that once GST is implemented a company can claim credit of up to 40% of their Central GST dues for excise duty paid on stock held by businesses prior to the rollout.
Several dealers are choosing to wait and watch rather than buy and hold on to inventories. They have lobbied with the government seeking an increase in the credit limit.