The Surat Regional Office of The Gem & Jewellery Export Promotion Council (GJEPC) yesterday convened a meeting of trade members to discuss the way forward in addtessing the issue of ITC accumulation under the GST regime.
It may be recalled that a few months ago, following earlier representations made by GJEPC, the central government had reduced the GST rate on Job Work from 5% to 1.5%. However, this did not resolve the issue of accumulation totally and the question of refund or utilization of accumulated tax credit persists.
GJEPC has now appointed M/s. Deloitte Haskins & Sells LLP as consultant to propose possible solutions to this issue.
More than 55 trade representatives, mainly from diamond manufacturing units, attended the meeting where they had detailed discussions with the consultants. The points covered included different working models, practical challenges and reasons for ITC accumulation, etc.
Based on this trade feedback, and subsequent data collection, a detailed analysis will be prepared shortly.
News Source: gjepc