GST transitional issues: What more needs to be done

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 June 3.

The positive decision was that the input credit available to manufacturers and dealers without