New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) is confident of getting its backend technology ready by September 22 for a smooth transition to the next-generation GST and is engaging with industry on software upgradation for their return filings, a top tax official said on Thursday.
CBIC Chairman Sanjay Kumar Agarwal also said the tax rate and slab rejig, which was approved by the GST Council on Wednesday, is based on classification of goods and services based on the bracket of ‘merit’ and ‘standard’, unlike in 2017, when it was on the basis of revenue neutrality.
The GST was rolled out on July 1, 2017, and it subsumed over a dozen local levies. The taxes were levied at the rate of 5, 12, 18, and 28 per cent, besides a compensation cess in the range of 1-290 per cent on luxury and demerit goods.
The GST Council, comprising finance ministers from the Centre and states, on Wednesday decided to prune the slabs to just two, with tax rates at 5 and 18 per cent, and a special 40 per cent rate on demerit and ultra-luxury items.
The tax rates will be effective on September 22, except for tobacco and related items.
“We are confident that the time, which is available to us, about two weeks...we will be fully prepared for the new levies. The department has already contacted the industry and given them a heads-up so that they can also upgrade their
systems.