New Delhi, NFAPost: The Confederation of All India Traders ( CAIT) has appreciated the GST rates rationalisation exercise by the GST Council and it has urged Unikn Finance Minister Nirmala Sitharaman that along with rates rationalisation an exercise should also be made to review afresh the GST Acts & Rules which also needs greater simplification.
The CAIT has planned to meet finance ministers of all States to put forth its demand. The CAIT is holding a two days convention of Trade Leaders of the Country at Nagpur on 25-26 June, 2022 to draw a strategy of a national campaign on both GST and ecommerce which will begin from 1st July. Nearly 100 prominent trade leaders of all States will have brain storming session at Nagpur during the two days convention .
CAIT Secretary General Praveen Khandelwal met Finance Minuster Nirmala Sitharaman couple of days back and stressed the need of widening of tax base of GST by simplification of GST Act and rules which will yield more revenue to both Central & State Governments.
He also suggested for formation of a Joint GST Committee at every District of the Country comprising of senior tax officials of GST and trade leaders of the respective District. The committee be assigned the task of monitoring GST implementation and redressal of trader’s grievances and make all efforts to onboard more & more people under GST regime.
He also added that rate rationalisation of GST should be done after consulting various stakeholders. CAIT Secretary General Praveen Khandelwal also laid much stress on keeping textile & footwear under the tax slab of 5%.
CAIT National President B C Bhartia & Secretary General Praveen Khandelwal said that the trading community of the country is of the considered opinion that currently a large number of items fall in wrong bracket of tax rate and therefore rates rationalisation will give an opportunity to recast the GST tax slabs and right item in right tax rate should be placed to avoid anomalies & disparities.
Both Mr Bhartia & Mr Khandelwal said that trade associations of the Country under the flag of CAIT have begun deliberations on rates rationalisation. Though it’s a very preliminary stage but it is opined that exempted category should include only essential items and 5% tax slab should be made for raw materials or items used as integral part of any finished product and items related to Roti, Kapda aur Makaan including footwear.
The trading community is also of the view that 12% tax slab should be abolished and in place a new slab of 14% which is a revenue neutral rate of 12% & 18% should be carved out for items falling currently in 18% tax slab. High value items like gold, silver, it’s jewellery etc should be placed under 1% tax rate.
The slab of 28% should be restricted to only sin items and rest of the items of 28% should be categorised under 14% tax slab.
Both Bhartia & Khandelwal said that for creation of a new tax slab in place of 5%, or any other new slab, a comprehensive opinion should be taken from all stakeholders as the matter directly related to trading community of the Country. They said that dictum “ lower the rate- higher the compliance “ should be adopted as a fundamental provision for deciding the parameters of rates rationalisation.
