Modi Government not to revise GST rates at the moment: CBEC Chief

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The government may not revise tax rates for commodities under the new indirect tax system unless there is an anomaly, need for correction or something has been left out.

"Industry will have issues on law, on rules, rates, but there is time for it," Central Board of Excise and Customs (CBEC) head Vanaja N Sarna said today.

Sarna further said that the textile and entertainment sectors were facing issues with the rates and these will get ironed out with time.

 "The issues are basically related to rates which not only textile people have, but others also have. Unless, there is something fully justified, unless there's an anomaly, I don't think we have any reason to revise rates at the moment," Sarna added.

Sarna informed that textile traders from Surat have cancelled their 19-day strike after getting assurance from the Centre regarding their demands.

"The issue of textile (sector) is they are taxed for the first time. So anybody who comes into the net would feel the pinch.... it's a balance of things," she said at an industry event here.

Though the rollout of the Goods and Services Tax (GST) since July 1 has more or less been smooth, the industry continues to grapple with implementation and transition related issues.

The government is continuously monitoring the situation as there are concerns that prices should not increase after GST implementation.

"...Price increase where it should not be. Nobody is hoarding anything, or there is a shortage, common man's drinks should be readily available. .the Prime Minister has specifically directed that the entire government must be involved in this exercise," she added.

Although there is an enforcement provision, she clarified that the government will go slow in the first 3-6 months.

"I would not want anyone to take a hard stand, there will be genuine mistakes, lack of understanding, so I don't want these small cases to be made," she said.

Currently, various groups under the government had the sectoral issues and will bring out the guidance notes soon on the GST.

"We have 18 sectoral groups, three groups have submitted their report today, of the remaining 15, eight of them are under consideration of the law committee which is going to meet tomorrow and day after tomorrow," she said.

The government does not plan to dismantle these working groups now and they would assist industries in the problems they face in the GST regime.

Category: news update
Source/Author: moneycontrol.com




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