CAIT recommends relaxation in GST, demands rate cut

Source: The Hitavada      Date: 08 Jul 2018 09:45:27


Business Bureau,

Setting aside the technical glitches faced by the traders across the country while dealing with the Goods and Services Tax (GST) during last one year, the Confederation of All India Traders (CAIT) on Saturday said that the country has come a long way as far as its tax system is concerned. The traders body expressed satisfaction over the new tax regime but it has come out with some suggestions and recommendations aimed at further improving the country’ tax system and creating ease of doing business.

In a meeting of the CAIT members here, the body decided to send the suggestion and recommendations to the GST Council for immediate action for immediate action.

The traders said that the Union Government’s alertness and quick decisions gave much needed relief to the traders. “There were some initial hiccups, but those were taken care of by the authorities. It is because of the new tax system, the revenue has increased by about 12 to 13 per cent and number of assessees has also increased to a level of 125 lakh and thus one can claim that it is a great success,” said B C Bhartia, National President of CAIT.

He was speaking at the meeting while review GST issues on eve of forth coming GST council meet. The traders’ meeting was organised by Team CAIT Nagpur at its conference hall.
Bhartia further said that the free flow of tax credits prevented burden of cascading effect on tax. “GST became a single law for the whole country with uniform procedures and rules, it reduced compliance burden. Except for initial technological challenges in filling of returns GST has not caused any disruption. In many cases there has been a saving of 3 to 5 per cent due to incremental credits and vendor price re-negotiation,” he said.

Bhartia said there were many issues that need to be adressed, but the fact that some of difficult ones have been resolved gave rise to confidence that even the remaining issues will be sorted out very soon.

The traders attending the meet said that the GST has now entered into the second year and every one should take it forward. In the meanwhile, they said that the procedures especially the filing of GST returns were very tough. “In the process lot of wrong claims of set off or under turn over or tax liability disclosure have taken place. It is suggested that a scheme to remove the errors be announced. This scheme be made valid for a period of one month. Under the scheme all windows of all forms for a period of July 1, 2017 to June 30, 2018 be kept open. And all the dealers be permitted to remove all the errors. Moreover there should not be any interest, fee or penalty for first year,” the traders said adding that GST was a new law. “It was as new to law makers, law administration, software company as it was for traders. The procedural problems attached with GST were inevitable,” CAIT members said.

Further Bhartia said that inplace of cash ledger there should be a cash wallet. “In GST while making payment it has to be mentioned whether it is for IGST, CGST, SGST, Fine, Interest or Penalty. The amount paid is credited to a particular head. This creates lot of problem. It is suggested that instead of cash ledger there should be Cash Wallet. What ever payment is made by the dealer it should be credited to cash wallet account and what ever is demand under GST, it can be adjusted against money in credit of wallet,” he observed.

CAIT also gave suggestion on tax rates asking some relaxations saying that the tax collection has achieved the targets and poised for further increase thus the rates of taxes be reduced.
At present there are number of returns to be filed. CAIT suggested that the dealers should be required to pay taxes on monthly basis and returns should be filed on quarterly basis.

At present details of all invoices are required to be uploaded and there is a system of invoice matching. It was suggested that instead of invoice matching there should be dealer wise purchase sale matching. It will reduce lot of compliance burden, CAIT observed.

Under the Reverse Charge Mechanism (RCM), if a registered dealer purchases from unregistered dealer the purchasing registered dealer is required to pay RCM which he can take credit in next month. There is no revenue to exchequer. Govt is extending the applicability of this provision time and again. Now this has been extended till September 30. It was suggested that provision for RCM should be deleted.

Farooque Akbani, Secretary General, Kishore Dharashivkar, Prabhakar Deshmukh, Nikhilesh Thakkar, Dyaneshwar Rakshak, Anil Nagpal, Ashok Jethani, Madhusudan Trivedi, Ravindra Gupta, Satish Bang and others were present on the occasion.