With the passage of CGST, IGST and UGST Bills in the Lok Sabha and Rajya Sabha, the SGST laws would now be required to be passed by the respective state assemblies. In the back drop, the government has also finalised the subordinate legislations and issued draft rules on valuation, transition, input tax credit and composition. The government has sought inputs from the industry by April 10, 2017 with regard to the draft rules released. This is a significant breakthrough by the government to provide clarity on the last mile of the journey towards GST.
“The efforts by the government are commendable to ensure that the implementation of GST is smooth across the industry. While the industry is catching up with the laws and rules released by the government, another key milestone would be determination of the GST rates, which would be expected to be released only by May,” said Manufacturers Association for Information Technology (MAIT).
MAIT said, two critical issues that the industry foresee right now and we hope that the government will address the same so that they do not create hurdles to the smooth rollout of GST: First, tax applicability on the existing stocks on the day of migration as they would be VAT paid already and treatment of tax. Second, refund on services provided under contracts.