Concerned over a decline in GST revenues, tax officials are likely to examine the high usage of input tax credit (ITC) to set off tax liability by businesses, sources said.
Indian Texpreneurs Federation (ITF) has appealed to all brands and retail chains operating in India to source their requirements from within the country instead of importing.
Clubbing 12% and 18% rates may cause an annual revenue loss of ₹1 lakh cr: Official.
As per the system being worked out by the Revenue Department, the taxpayer will get full refund from his jurisdictional officer once the claim is sanctioned, while at the back-end the Centre and States will apportion the amount to be paid to each other.
The Indian Texpreneuers Federation plans to write to Indian and international brands requesting them to source garments for the domestic market from the manufacturers in the apparel clusters in India.