Payments have commenced to jute mills, for jute bag supplies, following the easing of most of the pangs that had arisen in the wake of the roll out of the Goods and Services Tax.
“For despatches made since July 1, the Jute Smart application had to be tweaked to ensure that it is GST compliant,” Deputy Jute Commissioner Dipankar Mahto told The Hindu. “It was a complex task and our software team, along with IJMA experts, worked hard to make it ready,” he added.
‘Bills may now be raised’
The portal was readied on July 19 and mills can now raise the value bills for the gunny bales. The freight part will be billed later based on the clarification given by the CBEC/GST council, he said, adding that payments have started from July 20.
An official from Indian Jute Mills Association said that payments to jute mills have begun to be released from late evening of July 20.
Mr. Mahto added that 300 bills have been generated, out of which 200 bills have been submitted to the JC Office. Of this, 100 have already been paid and more are in the pipeline. The JC’s office aims to clear the remaining 100 bills on Saturday and also for accepting any new bill which the mills may submit.
The problems in the Jute Smart portal in the post-GST scenario had led to cash-flow problems for mill-owners. The portal, under the Jute Commissioner, brings together manufacturers, indenting agencies, transporters and inspection agencies.
While the GST rate has remained the same for jute sacks, the issue is to do with the stage at which tax invoices for services like freight and handling can be raised. “We have sought clarification in this respect,” Mr. Mahto said.