Micro and small companies would get influenced negatively if the GST rates are surged, as per S. Rethinavelu, president of Agrofood Chamber of Commerce and Industry.
The trade and industry had been in shock due to the finance ministry considering the GST rate slab increase to 5%, 12%, 18% to 8%, 18% and 28%, particularly in the face of covid impact on the economy.
The majority of the essential commodities were beneath 5% slab and day to day goods of importance beneath 12% slab. The proposed surge in the tax rates will raise the price of almost all commodities when the country was already seeing unusual inflation due to the Russia-Ukraine conflict.
The traders were being imposed to close their establishments because of the increase in GST slab rates.
Tamil Nadu Chamber of Commerce and Industry asks the GST official to rationalize the tax rates as the present GST tax rates were not proportional through the economic demand and the employment opportunities.
Chamber president N. Jegatheesan asks the GST council to rationalize the GST tax rates in four major slabs: 0%, 5%, 10%, and 15%.
The things beneath 0% and 5% classes must be resist unchanged. Items beneath the 12% rate must be drawn beneath the 10% class and the goods beneath 18% must be drawn beneath the 15% category.
“If GST tax rates are raised in the wake of rising inflation and uncertainty over economic growth, trade and industry, which have already been affected by lockdown, will come to a standstill. Prices of all essential commodities will go up considerably, which will affect not only trade and industry but also the general public,” he told.”
Inside the GST provision, it is essential to amend the structural issues which the trade and industry suffer.
