Manufacturing units ready for GST rollout

  • | Tuesday | 27th June, 2017

Although, it is higher under GST, I won't have to pay any cesses that I was paying earlier." He said the overall cost, therefore, should come down.There are, however, teething troubles in registering on the system. Pune: A majority of micro, small and medium enterprises here have registered on the goods and services tax (GST) portal even as confusion prevailed about the tax rates under the new regime.GST rates are applicable to all the units whose annual gross turnover is over Rs 20 lakh. "I think more than 90% of those who paid central excise tax or service tax have migrated to the GST platform," Vinod Patkotwar, chairman, Polymer Committee of the MCCIA, said.He said it will be tough initially since most of them are not used to e-filing of returns. But, it will be a net positive for the industry eventually.On the impact on inflation, Patkotwar who runs a rubber factory in Bhosari, said, "Let us say my current central excise and service tax adds up to 26%, GST on rubber that I produce now will jump up to 28%.

Pune: A majority of micro, small and medium enterprises here have registered on the goods and services tax (GST) portal even as confusion prevailed about the tax rates under the new regime.GST rates are applicable to all the units whose annual gross turnover is over Rs 20 lakh. However, given that many of these small units will supply to somebody bigger in the chain, they will also have to register on the portal to continue to get orders - even if they file zero returns.The industry associations like Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) and the Federation of Chakan Industries Association have conducted multiple workshops for their members to get GST compliant."I think more than 90% of those who paid central excise tax or service tax have migrated to the GST platform," Vinod Patkotwar, chairman, Polymer Committee of the MCCIA, said.He said it will be tough initially since most of them are not used to e-filing of returns. But, it will be a net positive for the industry eventually.On the impact on inflation, Patkotwar who runs a rubber factory in Bhosari, said, "Let us say my current central excise and service tax adds up to 26%, GST on rubber that I produce now will jump up to 28%. Although, it is higher under GST, I won't have to pay any cesses that I was paying earlier." He said the overall cost, therefore, should come down.There are, however, teething troubles in registering on the system. As per Dilip Batwal, president of the Federation of Chakan Industries Association, "small vendors are lagging somewhat as they are still a bit at sea as to what is to be done".According to a tax expert, there have been many glitches with the software meant for GST registration. There have been glitches like verification PIN not coming as companies tried to onboard themselves.The government cognizant of the many glitches has extended the deadlines for companies to file returns till September 5, 2017.The MCCIA, said it's director general Anant Sardeshkmukh, has written to the government of India to further extend the deadline for filing of returns for micro and small enterprises and also allowing them some leeway to learn the terms of the new tax regime till December 2017.

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