GST: Traders will benefit from new rules, from now on input tax credit also included in refund calculation

Under the new GST law that came into effect from today, input tax credit on services has also been included in the refund calculation. Due to which the textile industry is benefiting a lot. Textile industrialists who had bought machinery paying GST on 18% of the item were not getting the refund of this 18% till now and could not even use it. However, now according to the new law, if the textile industrialists buy machinery with proper planning and order yarn in front of it and 18% ITC can be used by doing job work.

As per information received from GST sources, the refund of input services was not yet given, however, from now onwards, the input tax credit on services under the new law will also be included in the refund calculation for computing the refund paid to the businessmen. Is. Through which entrepreneurs can also get refund of various services availed. Similarly till now the textile industry used to pay 18% GST while buying machinery, but their credit was jammed and they could not utilize this tax. However, now they will be able to use ITC.

However, he has to show in the return that he has purchased yarn from his firm and is doing job work on it. It is worth mentioning that till now ITC worth crores of industrialists has been jammed. The new law will give a big relief to the textile industry.