Published On : Mon, Oct 30th, 2017

28% tax slab in GST is root cause of resentment

CAIT and GST
Nagpur: Though the trading community stands in solidarity with Government seeking early implementation of GST in the Country but at the same time illogical fitment of items under 28 % tax slab has drawn flaks from not only the traders but even consumers are strongly opposing it since it is eating major portion of their pocket. There seems to be no end of traders problems under GST regime which is leading to unwilling stiff opposition of GST procedures. The arbitrary creation of 28 tax slab has greatly distorted the scope and spirit of true GST and therefore the Confederation of Alk India Traders (CAIT) has demanded scrapping of this slab and restricted it to only luxury and demeri goods.

Since the GST portal has completely failed , the CAIT has also urged the Government to open Tax Facilitation Centres across the Country in association with Trade Associations.

CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal said that framing of 28 percent tax slab was not at all required in a Country line India and moreover the items placed under this slab have been done purely in an arbitrary manner without applying any yardstick and it is a fact that State Governmentsin lust of earning more revenue have kept aside the sentiments and welfare of the people. There are large number of items if daily necessity if a common man which have been put in this slab and made the same out if reach if an ordinary person. This cant be the motto of GST at all.

Many of the items which were earlier in lower tax slab have been categorised under 28 tax rate resulting in disrupting of business economy of the trading community. Items like Auto Parts which were under 5% slab have been placed under 28%, items related to construction and infrastructure like Cement, Builders Hardware, Plywoid, Electrical Fittings, Marbles etc have been placed under 28% much against the announcement of Prime Minister advocating strongly for affordable housing. General consumables like Haldi, Zeera, Red Chilly, Dhania which are farming items have been placed under 5% instead of exempted goods, Hand Bags under the slab of 28%, Marble, Stone etc. used for construction of Buildings have been covered under 28% etc. it is astonishing tonite that nutrition and protein items used by children and women have also been not spared and placed under this slab.

The CAIT has called for a review of different tax slabs under GST in consultation with Trade Associations.