Industry needs at least three months to implement the GST after finalisation of rules and other norms, new Federation of Indian Chambers of Commerce and Industry (FICCI) President Pankaj Patel said. He said that after the government fixes the rules of Goods and Services Tax (GST), industry would require three months to put the software in place.
“We are ready to implement the GST but it would take time to put the software in place. That can only be done after the rates on different products are finalised by the government,” Patel told PTI. A four-tier GST tax structure of 5, 12, 18 and 28%, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess, was decided by the all-powerful GST Council.
With the GST Council still grappling with certain issues, rolling out of GST from April this year seems unlikely. Government, however, has time till September to implement the new indirect tax regime. Patel said that GST would help in bringing the unorganised sector in the mainstream and widen the tax base.