GST officers should not create panic in market: CAIT

Source: The Hitavada      Date: 07 Jul 2017 09:21:09


Business Bureau,

THE officials of GST Department may be visiting market to know whether benefit of reduction of taxes if any has been passed on to consumers or not. “But this is creating panic and terror in market,” said B C Bhartia, National President of Confederation of All India Traders (CAIT). He was leading a delegation to meet Amit Saini, Joint Commissioner of Sales Tax (Inv) to discuss the issues post GST implementation.

During the meeting, Bhartia said, “It is widely claimed that after GST interaction between officials and traders will be minimised, but GST was implemented from July 1, and officials started visiting markets from July 4, and has been a matter of concern amongst the traders though the visits may be for consumer benefit.”

Placing the facts about GST preparedness, Bhartia appreciated the various awareness campaigns and road shows carried on by Sales Tax Department. “The traders of Nagpur have welcomed GST and have started moving towards GST regime business,” he said.

Bhartia brought to the knowledge of Saini the issue of taxing red chillies under name of capsicum. He said, “Capsicum in local language is called Shimla Mirch. It is surprising that Shimla Mirch whether green, yellow or red is exempt but taking clue from capsicum as botanical name the Department is taxing red chillies under disguise that it is member of capsicum family.” This according to Bhartia was extending the wording beyound imagination. If this were to be accepted then traders will have to learn botany as well as all engineering words to know what can be taxed
and where.

“Chillies when green is tax free and when it changes colour it becomes taxable. The markets of Guntur and Nagpur are not ready to accept such illogical extension of meaning,” he pointed out.

Raising the issue of NMC Contractors Association, Bhartia said that in respect of work orders which were issued prior to June 30, carried VAT extra. “Now, VAT is subsumed in GST. Since, GST extra is not mentioned in the work orders the contractors fear that Department will not give GST. Contractors cannot pay taxes of around 18 per cent from their pocket,” he noted. Bhartia requested that some departmental instructions should be issued to allow charging of GST in addition to amount.

Furthermore, Bhartia appraised Saini about running of ‘GST Ki Pathshala’ to develop skills in GST compliance amongst accountants and traders to make them GST tax compliant.
Saini gave a patient hearing to the delegation. He assured the traders that the Government and Department are with them. The officials in market are doing only rate study to ascertain the impact of GST on consumer price. “The traders should not panic but cooperate with officials,” he said. He appreciated the efforts of trade associations in coming out for adoption of GST. He said that issues raised will be carried to Mumbai and briefed to higher officials. B P Bhalchin, Additional Commissioner of Sales Tax, P K Agarwal, Joint Commissioner of Sales Tax were also present. The delegation comprised of Prabhakar Desmukh, Nikhilesh Thakkar, Virendra Chandak, Jaishree Gupta, Sapna Telreja, Dilip Rathi, Prakash Chandak, Praveen Randhar, Vijay Naidu, Pavan Gour, Samim Khan etc., informs Secretary
Farooque Akbani.