RSS affiliate traders’ wing too not happy with GST
LUCKNOW: After drawing criticism from opposition and many traders’ group, now the GST is also being criticised by the Laghu Udyog Bharati (LUB), an RSS-connected national confederation of MSME (micro, small and medium enterprise) units.
The traders associated with LUB are not happy with the Centre and UP government over the GST rollout and feel that more tax has been imposed on around 20 products. The LUB, now, wants GST to be slashed on these products.
The association wrote a petition to Rajesh Agarwal, finance minister, Uttar Pradesh government, to cut down the GST in the interest of micro small and medium enterprises (MSME).
At the state level convention of the Laghu Udyog Bharati organised here on Sunday, traders openly discussed their grievances before Prabhu Narain, prant sangh chalak (an office bearer of the RSS). They also spoke to Ved Prakash, sangathan mantra (RSS office bearer) and also organisational member of the LUB.
The Modi government rolled out GST replacing VAT from July 1 this year. However, the new taxation system has hurt traders and industrialists the most, which is considered core vote bank of the BJP. Implementing the GST has also been a major problem for the commercial tax department of the state government.
Ravindra Singh, state general secretary, Laghu Udyog Bharati, pointed out the problems faced by the traders post-GST. Singh also apprised the RSS leaders about the high GST imposed on around 20 products and sought immediate relief from the state government.
Industrialists present at the convention pointed out that high GST rates have been imposed on concrete cement, plywood doors, locks of Aligarh and PVC pipes among other products.
Rakesh Garg, state president, LUB, pointed out that post-GST industrialists were also facing fund crisis. “Under the GST we have to submit more tax. We are running short of funds. But banks are not willing to increase cash credit and over draft limit of the industrialists,” Garg said.
Traders also raised the issue of banks not accepting coins. “In such a scenario, we are left with surplus coins,” said Ravindra Singh.
The medicine market in the state capital, the biggest in the state, is also reeling under the GST. In the market, post-GST, business transactions have come down drastically hitting trades income.
Now, the Lucknow Development Authority’s flats constructed under the affordable housing category in the CG City, Sultanpur Road, would also cost more. All 864 flats, having carpet area of less than 60 square meters, have come under the purview of 12% GST. Earlier, flats having carpet area up to 60 square meters were exempted from 4.5% service tax.
The lower income group (LIG) flats would be costlier by ₹2.20 lakh and the economically weaker sections (EWS) flats are all set to cost ₹1.27 lakh more, hitting the lower income group.