For claiming deemed credit, the goods should be leviable to excise duty or additional customs duty and the goods should not be unconditionally exempt from the whole of duty of excise.
"This will also ensure that the aim of the government of digital India is achieved as GST at the rate of 28 percent will make IT products expensive to the end customer", Manufacturers Association for Information Technology (MAIT) said in a statement.
"On 1st July, India's labyrinth of taxes will be replaced with a simple, nationwide GST". There are two important GST rates which will affect the industry.
In a letter to the presidents of the different political parties, Jaitley said: "With the cooperation of all the political parties, the 101st Constitutional Amendment Act for Goods and Services Tax (GST) was passed by the Parliament and the same was notified on September 8, 2016".
"Small-scale artisans and retailers with varying degrees of tax compliance may struggle to adapt. But the tax should also change the industry to the benefit of the consumer", WGC said here in a report on Thursday.
"Recent rate fitment exercises have, however, perhaps inadvertently resulted in bracketing items important from a health point of view or from a mass consumption point of view in slabs which are higher than where they should be placed", the letter said.
The draft transition law had said that once GST is implemented, a company could claim credit of up to 40 per cent of their CGST or SGST dues for excise duty paid on stock held by businesses prior to the rollout.
As per the current tax norms, the taxes on printers are close to 18 per cent.
The picture in jewellery manufacturing is more extreme, with 95 per cent of the industry consisting of small-scale operations, it added.
It states the consumer now gets a bad deal as gold industry is highly fragmented, dominated by small independent retailers where under-carating is rife. So post July 1, GST will bring in more transparency to the supply chain.
India's gold demand, which we expect to be between 650-750 tonnes in 2017, rising to 850-950 tonnes by 2020.
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