Nagpur: BJP CA Cell recently met union transport minister Nitin Gadkari and apprised him of the issues, concerns and suggestions of trade and industry with respect to proposed GST module.
They also informed him about the harsh provisions of Company Law 2013.
BJP CA Cell members explained the key issues which may arise on implementation of GST to Gadkari.
The delegates of the cell said instead of 3 GST i.e. Central GST (CGST) ,State GST (SGST) and Integrated GST (IGST ) there should be only a national GST. The objective of GST to make India as one common market for business and trade will be achieved with a national GST only. 3 GSTs will complicate the compliance matters.
The draft law should be thoroughly discussed with all the stakeholders before its implementation, they said and added that the GST rate should not be more than 20 per cent (CGST and SGST combined).
An ideal GST should subsume all the indirect taxes and all the commodities. Currently petroleum products, liquor have been not included in GST. Also stamp duty on real estate transactions should also be covered in GST.
An additional levy of 1 per cent (non-vatable ) has also been proposed for inter state supply of goods. This is against the principle of GST and will increase the cost of product on every movement of goods from one state to another, the delegates informed the minister.
A single authority should monitor the tax. As per draft provisions state will monitor SGST and Centre will monitor CGST and IGST.
What will be the threshold limit is a big question. It should be uniform for SGST/CGST and should not be less then 25 lakh
Further BJP CA Cell members explained the harsh provisions of Company Law 2013 with respect to raising of funds by private limited companies.
He informed that the Companies Act 2013 has surprised the trade and industry by withdrawing all the exemptions and put them in a very complex situation of compliance. Apart from loans from financial institutions/banks, these private limited companies are managing their business from the funds from their own sources or from their friends and relatives. It helped them to grow their business. It is beyond imagination that how the small companies will meet its fund requirement if they are denied or prohibited by law to take money from stakeholders, friends, relatives and associated companies.
Though the Act allows loans from directors, but it also put the condition that such loans cannot be provided from the borrowed funds.
No company can make all fund providers as directors to meet the requirement.
Nitin Gadkari discussed the issues thoroughly with the delegation and assured to fix a meeting of BJP CA Cell in this regard with the minister of State for Finance Jayant Sinha very soon. He appreciated the efforts of Cell in apprising him the concerns of trade and industry.
President of BJP CA Cell Ashish Mukim led the delegation. Satish Sarda, O S Bagadia, Sandeep Surana, Puneet Badoniya, Shyam Modi, Ajay Vaswani, Deepak Jethwani, Ashish Agrawal, Chetan Ghatole and other members were present in the meeting. BJP CA cell delegates discussing nitty gritty of GST, Company Act 2013 with Union transport minister, Nitin Gadkari.