The Confederations of All India Traders ((CAIT) head of organization traders wrote a letter to the Union Finance Minister Arun Jaitley wherein the traders have demanded the three GST slab rates instead of levying GST at five different slab rates. The said letter has been designated just before scheduled 33rd GST council meeting which has been adjourned till 24th February 2019 by FM Arun Jaitley.
Under the new GST Law, the amount of different taxes must be included in the price of the goods while purchasing the goods and no extra/ different taxes should be taken from the consumer, said CAIT.
CAIT stated that the great steps taken by the government to make the GST law contented are appreciable. The traders of the organization stated that it is very essential for the government to take such kind of steps to make the complex reform easier which would provide benefits to the taxpayers while filing taxes as well as the government gets more revenue collection than the expected.
Mr Praveen Khandelwal, National Secretary General of Confederation of All India Traders (CAIT) wrote a letter to Arun Jaitley and stated that actually the consumer’s fears from giving taxes separately. Due to high tax rates while collecting the goods the businessmen don’t collect the bill so that large numbers of sales haven’t recorded in books which resultant revenue loss to the government. Later, the businessmen are blamed for not paying the taxes whereas they don’t have any fault
Not collecting the bill while purchasing the goods is one of the major reasons for the shortfall of revenue collection under GST.
Praveen Khandelwal showed a serious concern in this matter and stated that the government have to develop such kind of tax system wherein the consumers don’t get a burden to pay taxes separately and the consumers don’t get fear to collect bill while purchasing the goods. In this serious matter, he suggested that the government must apply three GST slab rates instead of five.
Under which IGST to be applicable on sale purchase between 2 states while sales in any other state to be applicable with SGST and CGST. After that no GST in the supply chain. Also, the demand was to assume GST in the final price of the product and no SGST & CGST on the manufacturing of goods up to INR 50 lakhs.
CAIT stated that whenever the consumers would get similar GST slab rates as well as they don’t require to pay taxes separately and then they would definitely take the bill from the traders at the time of purchasing goods.
A large number of sales which are not recorded so far under the GST law. After the reduction in GST slab rates, the sales would be recorded and ultimately enhances the revenue of the government significantly.
Value addition is a common part of the sales and purchase done by the entities within the supply chain in different states which means a loss of 1 to 2 per cent of revenue for the government.
According to CAIT, if this necessary step has been taken by the GST council then the number of registered taxpayers under GST law would be reduced from crores to millions. Secondly, the revenue collection would be enhanced significantly.
