: CAIT urges FM to defer rollout of Rule 86B in GST #FinanceIndia #StockMarketNEWS CAIT urges FM to defer rollout of Rule 86-B in GST New Delhi, Dec 26 (KNN) The Confederation of All India Traders (CAIT)

@StockMarketNEWS Tue 29 Dec, 2020

Posted in: #FinanceIndia #StockMarketNEWS

CAIT urges FM to defer rollout of Rule 86B in GST #FinanceIndia #StockMarketNEWS
CAIT urges FM to defer rollout of Rule 86-B in GST New Delhi, Dec 26 (KNN) The Confederation of All India Traders (CAIT) has urged the Finance Minister Nirmala Sitharaman to defer implementation of Rule 86-B immediately which levies a mandatory payment of 1 per cent tax to be deposited where the monthly turnover is more than Rs 50 lakh.

The traders body further termed it a counterproductive step which will load the traders further with burden of compliance and also much financial obligation.

Traders across the country are deeply in resentment in certain GST issues which are being enforced without consultation with traders and without realising the on-ground implications, it said in a letter to the Finance Minister.

CAIT National President B C Bhartia & Secretary General Praveen Khandelwal also sought an early appointment to discuss GST tax system threadbare and to review its as on date status from the date of its implementation to enable both government and traders to understand each other’s view and to draw a joint strategy to simplify the GST tax system, widening the tax base and to yield more revenue to both central government and state governments.

Bhartia & Khandelwal said that in the light of the current scenario when the internal trade is highly disturbed due to repercussions of COVID and traders are fighting for survival of business, it is strongly urged that Rule 86B may please be deferred to be implemented.

The duo regretted that certain amendments including amendment of Rule 86B, which in itself is a killing provision and will prove to be much detrimental to domestic trade of India.

The trade leaders further said that any amendment in any tax law should be implemented from the beginning of fiscal year instead of amending again & again during the in-between period of the year. Since, the entire taxation system is computerised, it takes time for the government portals to update whereas on the other hand traders have to depend upon software providers to include the amendments.

Over the period, the GST again is culminated into a cobweb for the traders and it is a general feeling that instead of simple tax it is becoming a much-complicated tax system putting greater compliance burden on the traders, much against the vision of Prime Minister Narendra Modi who has always advocating strengthening of small businesses, they said.

Unfettered and discretionary powers including cancellation of GST registration and power to arrest are vested to officials and it’s misappropriated use can’t be ruled out, the added.

The CAIT agreed that strict action must be taken against alleged tax evaders but on account of few people, everyone should not be subject to harsh provisions and it is against the principle of natural justice.