CAIT urges GST Council to rationalise tax slabs

Source: The Hitavada      Date: 04 Oct 2017 09:20:54


Business Bureau,

Confederation of All India Traders (CAIT) on Monday draw attention of the Union Finance Minister Arun Jaitley towards anomalies, disparities and contradictions of GST and mal-functioning of GSTN portal, in order to provide ease of complying GST provisions for the traders.
“The non smooth working of the GSTN portal on the one side and confusions pertaining to procedures have fractured GST to an extent and if remedial measures are not taken, it is feared that people will find them distracted from GST,” CAIT said.

CAIT National President B C Bhartia in the traders conference held at Jaipur on Monday hoped that GST Council will have serious deliberations on the tax and procedural issues raised by CAIT and other organisations. Irrationality of 28 per cent tax slab under GST will be looked into and items not falling under luxurious and demerit category but have been placed in 28 per cent tax slab should be brought back to lower tax segment.

He said, “28 per cent tax slab is considered as one third cost of the product by the consumers and therefore they are resisting them to pay 28 per cent tax. This anomaly needs to be rectified in order to make GST affordable at the level of consumers.”

About 1200 items have been classified so far under different tax slabs. Of them, 19 per cent items have been placed under 28 per cent tax slab which in itself puts a question mark on the rationality of 28 per cent tax slab which was specifically designed for levy tax on luxurious and demerit goods. Likewise, foodgrains are tax exempted if not branded and if branded then levy of 5 per cent tax has created a major distortion and GST Council should take remedial measures.

Praveen Khandelwal, Secretary General of CAIT said, items like spareparts of two-wheeler, three-wheeler and four-wheeler, housing necessity items like cement, building hardware, paints, marble, furniture, sanitary ware, electrical fittings, beauty and cosmetic products, polishes and creams for footwear, scientific instruments, are some of the prominent items which falls under this category and cannot be termed either luxurious or demerit goods. “These are general consumables and are being used by common man,” he said.

Kishore Tak, CAIT Rajsthan Chapter President, Seema Sethi National Convenor of CAIT Woman Wing and more than 200 trade leaders from 33 district, Rajsthan attended the meeting. K L Jain, Rajsthan Chamber President, Rajkumar Bindal, CAIT Research Wing President and Harish Garg, CAIT Chandigarh Chapter President were present.