Anticipated Decline in Excise Collections Pre-GST Implementation
The impending implementation of GST is expected to cause a reduction in excise duty collections as dealers delay purchasing new stock. Uncertainty regarding final GST rates and transition provisions has led businesses to adopt a cautious 'wait and watch' approach. This prudence is projected to negatively impact excise revenue during the April-June quarter, according to insights from professional services firms.
Anticipated Decline in Excise Collections Pre-GST Implementation
The impending finalization of Goods and Services Tax (GST) rates is expected to lead to a decrease in excise duty collections. Many traders, uncertain about the upcoming GST rates and the associated transition rules, are holding back from purchasing fresh stock from manufacturers.
Businesses are adopting a cautious approach. They prefer to observe market developments rather than acquiring substantial inventories, which could potentially result in losses once GST is implemented in July. A spokesperson from a prominent professional services firm indicated that this prudent behavior might negatively affect excise collections during the April-June quarter. This information was initially reported by LiveMint.