New Delhi, Jan 9: The Central government might give a massive relief to companies as it may announce an extension in its transitional tax credit scheme. Sources said that the government will announce this when Finance Minister Arun Jaitley presents the Union Budget on February 1. Also Read - GST Officials Detect Over Rs 830 Crore Tax Evasion by Pan-masala Manufacturing Unit in Delhi
Sources said that the transitional tax credit scheme may run till June 30 2018. The government had announced that traders will get the tax credit for 180 days from the implementation of the Goods And Services Tax (GST). On December 27, 2017, the scheme had ended. However, new announcement is expected when Jaitley presents Budget 2018-19. Also Read - GST Revenues Cross Trillion Mark For 2nd Straight Month at Over Rs 1.04 Lakh Crore in November
The source further said that it was not possible to amend the GST Act at the moment; hence, the government will bring a finance bill to make the change in rules. With this, companies will be able to claim transitional tax claim till June 30, 2018. Also Read - GST Collections in Oct May Cross Rs 1 Lakh Crore Mark For First Time in FY21
Many companies couldn’t clear the stocks as premium products take longer time to sell. Companies had argued that government cannot tax an item twice.
The Goods And Services Tax was rolled out from July 1. Prime Minister Narendra Modi launched the biggest tax reform since independence in Parliament in the presence of the then President Pranab Mukherjee.
Arun Jaitley will table the Budget on February 1. This will be Modi government’s last full budget before General Elections 2019.