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IT Park Association asks Lokesh to take up GST issue with the Centre

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Wednesday, June 7, 2017
Visakhapatnam


Rushikonda IT Pak Association (RITPA) has asked the IT Minister Nara Lokesh to use his good office for reduction in GST on software sector by convincing the Centre.

RITPA vice president O.Naresh Kumar in a representation to Lokesh said that it had shot up to 18 per cent. The rise in the GST is going to hamper the domestic IT services and spell doom on small and medium IT companies. At present, there is 10 per cent tax deduction at source on invoice amount and if implemented from July 1, 18 per cent GST on services would pose a working capital crisis for the domestic software business. The rate was initially 4 per cent when service tax was introduced and later had gone up to 12 per cent at the beginning of the year. It was subsequently revised to 15 per cent in the budget and further increased to 18 per cent .