As the country stands on the cusp of a transformational tax
reform. The worry now centres on how smoothly trade and industry
can carry over existing input credit into the new GST regime.
Therefore, trade and industry is looking closely at transitional
rules. This has important consequences on how quickly trade would
like to draw down their inventories before the implementation date
and also on decisions relating to the pricing pattern.
The transitional rules were recently approved by the GST Council
in the meeting held on 3 June 2017.
The positive decision was that the input credit available to
manufacturers and dealers without having to produce original duty
paying documents has been raised from the proposed limit of 40
percent of the value of the goods to 60 percent for items baring
GST duty rates of 18% or more. This provision would benefit
industries with a long delivery supply chain extending to first
stage dealers and second stage dealers stockist. This
