Confident of smooth migration to new GST slabs, engaging with industry on software upgrade: CBIC
GST
Dated:- 4-9-2025
PTI
New Delhi, Sep 4 (PTI) The Central Board of Indirect Taxes and Customs (CBIC) is confident of getting its backend technology ready by September 22 for a smooth transition to the next-generation GST and is engaging with industry on software upgradation for their return filings, a top tax official said on Thursday.
In an interview with PTI, CBIC Chairman Sanjay Kumar Agarwal also said the tax rate and slab rejig, which was approved by the GST Council on Wednesday, is based on classification of goods and services based on the bracket of 'merit' and 'standard', unlike in 2017, when it was on the basis of revenue
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cted the industry and given them a heads-up so that they can also upgrade their systems.
“They can also incorporate these (rate and slab) changes in their ERP systems, so that the entire rollout is very smooth, which will not have any glitches, we are confident about that,” Agarwal said.
Asked about industry worry on accumulation of input tax credit (ITC) on inventories, on which tax rates have been cut, the CBIC chief said the industry can pay GST dues using their entire ITC claims even after the new tax rates are rolled out from September 22.
“When they sell the goods or make the supplies, from September 22 onwards, new rates will apply. They (dealers) can utilise the ITC for making the duty payment while filing returns,” Agarwal noted
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ollection.
“Whenever a rate rationalisation exercise happens during the transition period, there will be some dip in revenue collections, but our experience is that increased consumption will lead to higher GST collections. Rate rationalisation leads to more economic activity, an increase in GDP and overall better collections,” Agarwal said.
He said the revenue buoyancy should pick up in 2-3 months, and collections would start improving. Also, pent-up demand in the festive season, starting with Navratri on September 22, should see higher sales and support GST collections despite rate reductions.
Agarwal said at the time of GST rollout, the main consideration for deciding tax rate on any item was revenue neutrality based on the then preva
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