NEW DELHI:The Confederation of All India Traders (CAIT) on Wednesday suggested technical audits and waiver of late fees to broaden the GST base to Union Finance Minister Nirmala Sitharaman. The organisation also drew her attention towards the recent notification of GST incorporating Section 86-B, which ‘levies a mandatory payment of 1% tax to be deposited where the monthly turnover is more than Rs. 50 lakhs’ and said that it is a counterproductive step which will ‘load the traders further with burden of compliance and also much financial obligation’.
CAIT further said that traders across the country are feeling deeply resentful regarding certain GST issues which are being enforced without consultations with them and without realising the on-ground implications.
CAIT has urged Sitharaman to defer the implementation of Rule 86-B immediately, which is scheduled to be implemented from 1st January, 2021, and also extend the last date for filing GST and Income Tax Audit returns from 31st December, 2020 to 31st March, 2021.
CAIT national president B.C. Bhartia and secretary general Praveen Khandelwal also sought an early appointment to discuss the GST tax system and to review its status from the date of its implementation to enable both the government and traders to understand each other’s views and draw a joint strategy to simplify the GST tax system, widening the tax base and yield more revenue for both the Centre and state governments.
Bhartia and Khandelwal said, “In light of the current scenario, when internal trade is highly disturbed due to the repercussions of Covid and traders are fighting for the survival of their businesses, it is strongly urged that Rule 86B may please be deferred to be implemented.” They said that certain amendments, including the amendment of Rule 86B, which in itself is a killing provision, will prove to be much detrimental to domestic trade of India.
The trade leaders further said, “Any amendment in any tax law should be implemented from the beginning of the fiscal year instead of amending again and again during the in-between period of the year.” Since the entire taxation system is computerised, it takes time for the government portals to update them whereas traders have to depend upon software providers to include the amendments, the trade body said in its statement.
Khandelwal said that over time, “the GST has culminated into a cobweb for traders and it is a general feeling that instead of simple tax, it is becoming a much complicated tax system putting greater compliance burden on the traders, much against the vision of Prime Minister Narendra Modi, who is always advocating strengthening of small businesses”. “Unfettered and discretionary powers including cancellation of GST registration and power to arrest are vested to officials and its misappropriate use can’t be ruled out,” the statement said further.
The CAIT agreed that strict action must be taken against alleged tax evaders but on account of a few people, everyone should not be subject to harsh provisions as it is against the principle of natural justice. The body also expressed willingness to join hands with the government in making GST a successful and trouble-free taxation system.