prasad1
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The Central and the state governments together are facing a Rs 20,000 crore revenue loss due to refunds claimed by companies on account of flaws in the GST rate structure, according to the findings disclosed by states and other stakeholders to the Committee of Officers.
The Committee of Officers was set up in October this year to suggest measures to augment GST revenue collection and administration to the GST Council.
The stakeholders have told the officers' panel that manufactured goods, such as fertilisers, mobile phones, footwear, renewable equipments, man-made yarns, which are in lower rates slab (5-12 per cent) suffer the "inverted duty structure" (IDS).
Several other items, including tractors, fabrics, pharma, edible oil, medical equipment, water pumps, LED lights, milling machines, utensils, ink, agri-machinery, job work, PP bags, also add to the IDS, said the sources quoting from the presentation of the states and stakeholders to the panel.
Sources said the IDS for manufactured goods has led to demands for refunds of ITC on services and capital goods and also to litigations and distortions.
"The estimated refunds on account of IDS is Rs 20,000 crore a year," the states and stakeholders have stated.
Read more at: https://www.sify.com/finance/gsts-i...-states-rs-20k-cr-news-tax-tmyta5aiagdae.html
The Committee of Officers was set up in October this year to suggest measures to augment GST revenue collection and administration to the GST Council.
The stakeholders have told the officers' panel that manufactured goods, such as fertilisers, mobile phones, footwear, renewable equipments, man-made yarns, which are in lower rates slab (5-12 per cent) suffer the "inverted duty structure" (IDS).
Several other items, including tractors, fabrics, pharma, edible oil, medical equipment, water pumps, LED lights, milling machines, utensils, ink, agri-machinery, job work, PP bags, also add to the IDS, said the sources quoting from the presentation of the states and stakeholders to the panel.
Sources said the IDS for manufactured goods has led to demands for refunds of ITC on services and capital goods and also to litigations and distortions.
"The estimated refunds on account of IDS is Rs 20,000 crore a year," the states and stakeholders have stated.
Read more at: https://www.sify.com/finance/gsts-i...-states-rs-20k-cr-news-tax-tmyta5aiagdae.html
