Government Plans Relief For Rail Component Makers Saddled With Unused Tax Credit

The government is considering ways to provide relief to the makers of railway components, according to a senior official, as such vendors have seen their costs rise after the goods and services tax was rolled out. Suppliers of parts to the national transporter pay 18 percent tax on inputs but the levy on finished goods is 5 percent. This inverted duty structure has led to accumulation of input tax…