Mobile handset companies, under the aegis of Indian Cellular Association, have sought additional six months to liquidate pre-GST period devices so that they can avail themselves of input tax credit.
The deadline to avail input tax credit by mobile firms on handsets manufactured before July 1 is December 31.
“Our feedback is that the six-month July-December 2017 period is insufficient to liquidate old stock. At least 20-30 per cent stock is still in the pipeline in the vast supply chain, under 35 GST jurisdictions,” ICA National President Pankaj Mohindroo said in a letter to Finance Minister Arun Jaitley on December 23.
The association has sought extension of at least six months.
Mohindroo said there will be no revenue loss as such since duty has already been paid on the products, and the facility to avail input tax credit for unlimited duration is available in the GST regime.
“There is no reason why the trade should be denied similar carry-forward in the cases of unrebated taxes suffered in the pre-GST regime,” he said.
Extension of deadline to June 30, 2018, will ease the transition to GST, and give relief without hurting industry and trade, Mohindroo said.
The Indian mobile device industry size in 2017 is estimated at ₹1.5 lakh crore.
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