Traders’ credit safe: Govt allays doubts amid GST 2.0 rollout

ITC REVERSAL ONLY ON EXEMPT ITEMS; OLD-PACK MRPs CAN BE UPDATED TILL MARCH 2026 WITH STICKERS OR REVISED PRICE LISTS

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Amid confusion among traders/ shopkeepers over the new ‘GST 2.0’ rate changes, the State government has clarified that the businesses are not required to reverse their input tax credit (ITC) on goods purchased at a higher rate, as long as the new rate is not zero.

However, if goods become entirely exempt from GST, any existing ITC must be reversed.