सविस्तर माहितीसाठी इकॉनॉमिक टाइम्स मधील बातमी वाचावी.

PepsiCo, Dabur, Godrej and Parle as well as other big consumer goods and durables companies want the government to raise input credit limit temporarily to even out any differential in taxes before and after the goods and services tax (GST) is rolled out on July 1. They are pushing for an increase in input credit available on such ‘transition’ stock from the current level of 40%, which has been proposed in the draft rules. The final limit is expected to be decided in the GST council meeting on June 3.

“The industry has requested the government to reconsider and enhance the limit of 40% on transition inventory,” Dabur chief financial officer Lalit Malik said.

Biscuit maker Parle Products marketing head Mayank Shah said the 40% input credit will directly impact the supply chain adversely. “The distributors would ideally like to go clean into the new system starting July 1 with zero held over inventory.”

The consumer durables industry too wants the government to increase the credit which it will offer to 70-75% from the 40% that has been proposed for the GST liability against excise duty paid on stocks remaining with traders and retailers. The companies have been offering separate tax invoice for VAT and excise since May to streamline the process. “If the compensation is increased to 70-75% from 40% which is proposed, most of the problem with unsold stock will be addressed and fear of the trade can be addressed,” said Videocon chief operating officer CM Singh.

via Consumer companies seek clarity ahead of GST Council meeting – The Economic Times