‘Shed inhibitions on GST’

“Industrialists in Tirupur apparel cluster should shed their inhibitions on Goods and Service Tax for achieving compliance and thereby getting refund of Input Tax Credit (ITC) at the earliest” said M. Periasamy, Joint Commissioner of GST and Central Excise, during an interaction of officials and industrialists organised by the Tirupur Exporters Association here.

Refund

Regarding the complexities cited by the apparel industrialists here on the ‘unutilised ITC’ on account of ‘inverted duty structure’ in the GST, Mr. Periasamy told

The Hindu that the government was ready to refund that too.

Since such cases mostly arise in dyeing and printing segments of the apparel production chain, the other GST officials added that the entrepreneurs could offset the 5 % output tax against the input tax credit levied at the time of purchase of raw materials where they be would paying 18 %.

“Any excess credit in the ITC credit ledger then can be claimed while filing the refund application”.

On the scepticisms pertaining to e-Way billing system for transportation of goods costing more than ₹50,000, Mr. Periasamy said the apparel manufacturers here should voluntarily start using the system from now itself instead of waiting for the rule to become mandatory.

“This will help them getting used to the system and raise doubts or issues to the authorities”, he added.