Friday, 22 June 2018

Dabur, other FMCG firms approach court over GST input tax credit

Dabur CEO Sunil Duggal


Share Market - FMCG big guns such as Dabur moved court against the denial of input tax credit relating to capital goods lying in stocks before the introduction of the goods and services tax (GST) in July last year.

The matter was being heard in the Uttarakhand high court.

But, now Dabur and other big FMCG players have filed their petitions in the matter, sources said.

Under the erstwhile tax regime, capital goods that went into the production of goods in states that used to give area-based exemptions were not given input tax credit.

However, now these goods have moved to the taxable category under the GST. Capital goods bought before July 1 last year but used for goods sold after the GST roll-out are not given input tax credit.

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