GST Council should consult traders before changing GST rates: CAT
New Delhi, June 22 (H.S.). The Confederation of All India Traders (CAT) has urged the GST Council to consult traders before changing the GST rates. CAIT also urged Finance Minister Nirmala Sitharaman to keep unbranded food grains exempt from tax and not bring it under the 5 per cent tax slab.
The CAIT on Wednesday said that the recommendations of the Group of Ministers (GMOs) of the states on GST rates should be consulted before implementation in the 47th meeting of the GST Council in Chandigarh on June 28-29. The trade body also said that textiles and footwear should be kept within the tax slab of percentage.
Business organization CAT General Secretary Praveen Khandelwal says that roti, cloth and house are the things of common people’s need. If tax is imposed on these items, then its direct impact will be on 130 crore people of the country, who are already facing inflation. Because, the income of the common man is decreasing day by day, while the expenditure is increasing day by day.
Khandelwal said that when the figures of GST revenue collection are increasing every month. Therefore, there is no justification for levying higher GST on any item. He emphasized that in the present circumstances, it has become necessary to review the GST laws and rules afresh and eliminate the discrepancies in its rates. The CAT General Secretary said that it has been learned that GMOs have made a unilateral recommendation to abolish the exemptions received in GST on many items and increase the tax rates of other items.
CAT General Secretary said that the GMOs constituted to rationalize the GST rates have only known the side of the State Governments. There has been no discussion with the traders regarding this. He said that any unilateral decision to change the GST slab would be against the Ease of Doing Business and Party Governance of Prime Minister Narendra Modi. Because GMOs have made recommendations, implementing them would make the tax structure more distorted and unusual.
He said that the traders across the country agree with the views of the GST Council on the revision of the existing rates of GST, but there is a need for a radical change in all the tax slabs of GST simultaneously. In fact, there are a large number of items which are not in the proper tax slab. On the one hand, some goods have higher taxes, while some have different rates of tax in different states. This is contrary to the basic principle of one nation one tax of GST. In such a situation, if the rate of tax is fixed after talking to the traders, it will be better and the revenue will increase. For this, business organizations across the country are ready to work together with the central and state governments.