24.06.2022: Consult traders before making changes in GST rates: CAIT to GST Council

The seven-crore strong traders’ body Thursday demanded that the GST Council should consult traders before making changes in GST tax rates.

The recommendations made by the Group of Ministers (GoM) constituted by the GST Council should not be given a go-ahead in their forthcoming meeting without consultation with traders, CAIT urged Finance Minister Nirmala Sitharaman.

The Confederation of All India Traders (CAIT) further said that recommendation of GoM to bring unbranded food grains under the tax slab of 5% will be a regressive step and in this matter, the status quo should be maintained.

CAIT also said that textiles and footwear should be kept in the tax slab of 5%. It argued that bread, cloth and housing are essential items for common people and if tax is imposed on them, it will create a direct financial burden on 130 crore people who have already been badly hit by inflation.

The income of the common man is decreasing while the expenditure is increasing day by day and therefore any new levy of tax will further complicate the situation, the traders’ body said.

CAIT Secretary General Praveen Khandelwal said that when the figures of GST revenue are increasing every month, there is no justification for imposing more GST on any commodity.

He stressed that in the present circumstances, it is necessary that the GST tax laws and rules should be reviewed afresh in totality and the discrepancies and disparities in tax rates should be eliminated.

“The implementation of the recommendations made by the committee would make the tax structure more distorted and abnormal, which would be different from the main objective of the GST tax system,” CAIT said.

Source: Deccan Herald
https://www.deccanherald.com/business/business-news/consult-traders-before-making-changes-in-gst-rates-cait-to-gst-council-1120757.html

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