In view of growing discontent about proposed GST
rates, CAIT has urged the government to revisit the rate schedule.
"The wider impact of the classification of items under different tax slabs needs to be gauged very cautiously since under GST not only the taxes paid on goods but even the taxes paid on the services will be eligible for input tax credit," CAIT said.
Besides, taxes paid on inter-state purchases of goods or availing services will also be eligible for input tax credit, it added.
"Hitherto, both these advantages were not available under VAT tax regime. Therefore, impact on the prices of commodities will have to be drawn after calculating advantages of input tax credit," CAIT said.
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