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Handset vendors seek a six-month extension from finance ministry to sell pre-GST stock

December 27, 2017

Mobile handset manufacturers have sought a minimum six-month extension to liquidate devices produced before the goods and services tax (GST) was introduced in order to avail of the input tax credit. At present, the deadline to avail input tax credit by mobile firms on handsets manufactured before July 1, 2017 is December 31, 2017.

According to the Indian Cellular Association (ICA), the six-month period between July-December 2017 was insufficient to liquidate the old stock and that at least 20-30 per cent stock is still in the pipeline under 35 GST jurisdictions. Moreover, ICA has pointed out that there will be no revenue loss from the extension since duty has already been paid on the products, and the facility to avail of input tax credit is available for unlimited duration in the GST regime. It added that the extension of deadline to June 30, 2018, will ease the transition to GST, and provide relief to handset vendors without hurting the industry.

 

 
 

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