Industrialists have raised serious concerns about difficulties in the transition to Goods and Services Tax (GST) to be implemented from July 1. Trade bodies have expressed concern about the fate of old stock under GST.
As per the transition provision, Input Tax Credit (ITC) will not be available to dealers with stock older than a year.
Sushil Sureka, general secretary, Ahilya Chamber of Commerce and Industry said, “Dealers will have quantum of problems during this phase. There is no clarity on several issues and one of them is about the stocks older than a year.” Sureka said under GST, dealers are not eligible for input tax credit for stock older than a year, leading to huge losses especially to electrical, machinery and automobile dealers. Senior tax consultant RS Goyal said, “The clause intransition provision is to display the bill of the stock that should not be older than a year.” Source – http://timesofindia.indiatimes.com [08-05-2017]