Appreciated the effort to rationalize the tax rate.
Traders body CAIT lauded the effort to rationalize GST rates. Apart from this, instead of abolishing the 12 and 18 percent tax slabs, they also demanded to implement the 14 percent tax slab.
Confederation of All India Traders (CAITRationalization of GST rates by the GST CouncilRationalization of GST Rates) and urged Finance Minister Nirmala Sitharaman to rationalize rates. In addition, the GST Acts (GST Act) and the rules should also be reviewed afresh. There is a great need for simplification of the existing GST framework. CAIT has planned to meet the finance ministers of all the states of the country regarding this demand. CAT is organizing a two-day conference of the country’s trade leaders in Nagpur from June 25-26, 2022, to formulate a national campaign strategy on both GST and e-commerce. This campaign will start simultaneously across the country from July 1. During the two-day conference, about 100 prominent traders from all the states will also discuss many other burning issues of the traders in the Nagpur conference.
CAT’s National General Secretary Praveen Khandelwal met Finance Minister Nirmala Sitharaman a few days back and stressed on the need for simplification of GST Act and Rules and widening the tax base of GST, which will generate more revenue for both the Central and State Governments. He also suggested the formation of a Joint GST Committee in each district of the country consisting of senior tax officers of GST and business leaders of the respective district. The committee should be entrusted with the task of monitoring GST implementation and redressal of traders’ grievances and should make all efforts to cover more and more people under GST. He also said that the rate of GST should be decided after consultation with the stakeholders. He laid great emphasis on keeping textiles and footwear under the tax slab of 5%.
Many products included in wrong tax category
CAT National President BC Bhartia and General Secretary Praveen Khandelwal said that the business community of the country is of the view that presently a large number of various items fall in the wrong bracket of tax rate and hence rationalization of rates will provide an opportunity for restructuring as well. To avoid discrepancies and inequalities, there will be an opportunity to correct the GST tax slab and place the right item in the right tax rate.
Demand to combine 12 and 18 percent tax rate to 14 percent
Both Bhartia and Khandelwal said that under the flag of CAT, trade unions of the country have started mutual discussion on rationalization of tax rates. Though this is a very preliminary stage, it is recognized that the exempted category should include only essential commodities and items used as raw material or integral part of any finished product and bread, cloth, etc. And 5% tax slab should be made for items related to house. Traders are also of the view that the 12% tax slab should be abolished and replaced by a new slab of 14% which is a revenue neutral rate of 12% and 18%, which is currently falling in the 18% tax slab. The objects must be prepared.
28% tax slab should be for upper class people only
High value items like gold, silver, its jewelery etc should be kept under 1% tax rate. The slab of 28% should be restricted to items used only by the upper class people and the remaining items of 28% should be classified under the 14% tax slab. Both Bhartia and Khandelwal said that for making a new tax slab in place of 5%, or any other new slab, a comprehensive opinion should be taken from all the stakeholders as the matter is directly related to the business community of the country. He said that “rate low-high compliance” should be adopted as a fundamental provision for setting the parameters for rationalization of rates.
Source: www.tv9hindi.com
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