GST : Companies to face hurdle in first six months

Delhi, May 23: As the deadline for GST is coming near there are growing fear among the industry about its implementation. Industry experts feel that July 1 may not be a feasible date for its implementation because of the complexity involved. A survey conducted by Indian ratings in the preparedness of companies

The report has indicated the following issues

# Companies may the problem for Working Capital for first 4-6 months during the implementation.

# Input credit may be delayed the government and may not be released in time.

# Only well-managed companies can face the challenge.

# The rise in service tax to 18 % will be a tough challenge to arrange capital.

# Huge stocks of inventory may also be a problem.

Finally, the companies are seeking solutions from, experts so that they transit easily during the roll out of new tax regime.