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ASSOCHAM demands postponement of GST rollout

ANI  |  New Delhi [India] 

The industry chamber on Saturday wrote a letter to Minister and demanded that the should postpone the implementation of Goods and Services (GST) as the IT network is not ready.

The is scheduled to be rolled out from July 1. ASSOCHAM's demand has come at a time when Jaitley will be chairing 17th Council meeting on Sunday to finalise rates on lottery as well as rules relating to e-way bill and anti-profiteering measures.

D.S. Rawat, Secretary General, ASSOCHAM, applauded the effort being made by the to implement at the earliest, but said there are various issues which still need to be looked at before can be implemented successfully.

"Going by the statements of CEO, Goods and Services Network (GSTN), the GSTN will not be fully operational on the 1st of July, 2017. This being the status of preparedness of the GSTN, the taxpayers would find it very difficult to comply with requirements from July 1, 2017... We believe that industry deserves some more time and assistance to get prepared for implementation," said

The GSTN, a not for profit Company incorporated on March 28, 2013, is tasked to provide IT infrastructure and services to the Central and State Governments, payers and other stakeholders for implementation of the

Rawat said that during the current phase of migration for existing assessees, the server was constantly under maintenance.

There are at present about 80 lakh excise, service and VAT assessees, of which 64.35 lakh have already migrated to the portal of Network.

However, is not the first to raise questions about the GSTN's readiness for the rollout.

On June 3, West Bengal Minister Amit Mitra also said the rollout of the can be delayed by a few days as the preparedness of the GSTN is unsatisfactory.

"With changes being made constantly by the council, the GSTN is not able to cope with these. There is a large volume of transactions that need to be monitored. The matrix of weights for incidence was given only day before yesterday. The rollout can be delayed by a few days; there is nothing sacrosanct about July 1," he said.

The council has finalised the rates of the commodities that were excluded from the 14th meeting.

Biscuits will be charged an 18 percent while a 12 percent has been levied on readymade garments. Also, cotton and textiles will be charged five percent under the new regime.

The council decided to levy five percent on footwear below Rs. 500, and 18 percent on those above Rs. 500.

Gold, gold jewellery, diamonds and silver will be charged three percent under the new regime.

Geometric boxes, pencils and sports goods have also been fitted to the 12 percent slab, while solar panels have been included under the five percent slab.

The council also fixed a 28 percent rate on beedi, adding that no cess is chargeable on the same.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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