All the dealers, immaterial of their turnover are eligible for full Input Tax Credit (ITC) on the purchase/receipt of goods or services used in the course of furtherance of business, said Commercial Taxes deparment, Government of Puducherry in a press release.
GST has been implemented across the country with effect from 01st July, 2017. In GST, those dealers whose All India aggregate turnover is more than Rs. 20 lakhs per annum should get themselves registered. There is no compulsion for the dealers whose turnover is less than Rs 20 lakhs to get registered. However, they can obtain registration under GST at their discretion even if their turnover is less than 20 lakhs, said the department.
Further for small dealers whose turnover is upto Rs. 75 lakhs per annum, there is a beneficial and simple composition scheme, whereby they can pay tax at lower rates i.e. 5% for restaurants, 2 % for manufacturers, 1% for other dealers and file returns quarterly and even make purchases from other states. However, ITC is not eligible for composition dealers since they are paying tax at lower rates.
The department also said that, the prices of most of the consumer goods, electrical and electronic appliances and vehicles have come down. But the public has a perception that the levy of GST has increased the prices of goods and services. The tax paid on most of the goods will be lesser or equal to the tax paid on such goods in the pre-GST regime.
“It is evident that the prices of two-wheelers and four-wheelers have considerably reduced. Likewise the prices of toothpaste, soap, detergent powder, plastic items, electronic and electrical goods have also come down,” the press release added.
The Puducherry Commercial Taxes Department directed all manufacturers and dealers to adjust the prices accordingly and display the new price by affixing a sticker without hiding the old MRP rate. He sought traders and consumers not to fall prey to the rumours on GST in social media and urged them to contact the commercial taxes department to clarify their queries on GST and tax rates.
