Re­tail traders happy with GST re­lax­ation

Traders say the re­lief mea­sures will sim­plify GST and en­cour­age faster adop­tion of the tax sys­tem.

The Sunday Guardian - - & Comment Analysis -

Re­tail traders have wel­comed the re­lief mea­sures granted by the GST Coun­cil but de­manded set­ting up of joint com­mit­tees of gov­ern­ment of­fi­cials and trade bod­ies at the cen­tral, state and dis­trict lev­els in or­der to ad­dress is­sues and for ef­fec­tively im­ple­ment the GST regime.

Traders say the re­lief mea­sures will sim­plify the GST and en­cour­age faster adop­tion of the tax sys­tem among the trad­ing com­mu­nity, but there are many more is­sues which are to be ad­dressed, for which these com­mit­tees could be very use­ful.

Speak­ing to this news- pa­per, Con­fed­er­a­tion of All India Traders (CAIT) sec­re­tary gen­eral Praveen Khan­del­wal said these com­mit­tees will en­sure that the de­ci­sions taken by the gov­ern­ment are per­co­lated at the low­est level which will ben­e­fit both the gov­ern­ment and the trad­ing com­mu­nity and make the im­ple­men­ta­tion sim­pler. “There is a need to have an ef­fec­tive com­mu­ni­ca­tion sys­tem for this pur­pose,” he said.

He said there are still many is­sues which will carry on till the time new regime gets sta­bilised. “There is the is­sue of ap­pli­ca­bil­ity of HSN code. It is a new con­cept and many traders have no idea about it. Also there is no clar­ity about nine types of in­voices. There is no nodal author­ity from where we can get cred­i­ble in­for­ma­tion. The gov­ern­ment should take us on board in or­der to ad­dress these is­sues,” he said.

“En­abling com­po­si­tion of deal­ers to make in­ter-state sales is a bold de­ci­sion and will en­able small traders to re­main com­pet­i­tive. In­crease in com­po­si­tion scheme upto Rs 1 crore, de­fer­ment of E Way Bill and Re­verse Charge Mech­a­nism will boost busi­ness sen­ti­ments in the coun­try,” said CAIT president B.C. Bhar­tia.

The coun­cil, headed by Fi­nance Min­is­ter Arun Jait­ley, tweaked the GST regime to pro­vide re­lief to thou­sands of small firms and ex­porters and re­duced the tax bur­den on 27 goods in­clud­ing food items such as nam­keens which will turn cheaper. It also raised the turnover thresh­old from Rs 75 lakh to Rs 1 crore for busi­nesses to avail of the com­po­si­tion scheme that al­lows them to pay 1-5% tax with­out go­ing through te­dious for­mal­i­ties of fil­ing de­tailed re­turns. Te­lan­gana Chief Min­is­ter K. Chan­drasekhar Rao (KCR) is im­mensely sat­is­fied with the slash in GST (Goods and Ser­vices Tax) rate on public works taken up by the state gov­ern­ment, a de­ci­sion taken by the GST Coun­cil meet­ing in Delhi on Fri­day. This has been a long time de­mand of KCR for the past three months. Te­lan­gana of­fi­cials put the es­ti­mated re­lief to gov­ern­ment works at Rs 8,000 crore.

Apart from Te­lan­gana, the de­ci­sion to re­duce tax slab from 12% to 5% on gov­ern­ment works would sub­stan­tially ben­e­fit at least an­other nine states—Ut­tar Pradesh, Bi­har, Ma­ha­rash­tra, Gu­jarat, Ra­jasthan, Mad­hya Pradesh, Andhra Pradesh and Orissa. These states have raised the is­sue of cut­ting rates on public works at the last GST Coun­cil meet­ing in Hy­der­abad on 9 Septem­ber.

As a re­sult of the GST Coun­cil de­ci­sion, the Te­lan­gana gov­ern­ment would ben­e­fit on around half a dozen ma­jor

REUTERS

Peo­ple look on as boats par­tic­i­pat­ing in the Clip­per Round the World Yacht Race leave Punta del Este har­bour in Uruguay on Wed­nes­day.

IANS

Union Fi­nance Min­is­ter Arun Jait­ley, along with other GST coun­cil mem­bers, dur­ing the 22nd GST Coun­cil meet­ing, in New Delhi on Fri­day.

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