- 55 associations present across Maharashtra
- About 20 associations represented individual cases of issues related to GST rates
Mumbai: A delegation of CAMIT under the leadership of Chairman Mohan Gurnani and Dipen Agarwal President along with representatives from 27 Mahanagar Palikas representing trade and industry from all over Maharashtra i.e. Mumbai, Nagpur, Nashik, Pune, Kolhapur, Solapur, Thane etc. met the Honourable Finance Minister, Maharashtra Sudhir Mungatiwar and Rajeev Jalota, Chief Commissioner, Sales Tax to discuss issues concerning GST.
Dipen Agrawal effectively raised the issue of e-way bill with an appeal to the minister to scrap e-way bill because it shall effect the free movement of goods inter & intra state & also said that e-way bill will increase harassment , corruption & inspector raj . Are we really GST ready ? GST being technology based tax were returns is to filed on GSTN portal which presently hangs on application being submitted for GST no. & what about rural areas is the infrastructure such as computerisation & net connectivity available . He said government should be sure of above only then implement GST & not show undue haste otherwise the tax reform will prove to be major failure & chaotic situation may arise . He further appealed to the minister to consider declaring first one year as transition period to GST where in no penalty or arrest or any action would be taken against mistakes in filing of returns or any compliance , he also requested to the minister to form a state level GST Council consisting of government , industry & trade representatives to smooth implementation of new tax regime .
Further the delegation gave a detailed representation in regard to the GST focusing on the following issues.
1. In regard to the Input Tax Credit, if the seller does not deposit tax to Govt even after buyer has paid the government will collect tax from buyer. This provision will lead to possibility of fraud as well as increases risk of doing business manifold. This provision needs to be dealt with expeditiously as otherwise trade will get affected.
2. Prosecution and penalty is very harsh. Only cases where evasion is detected needs to be dealt in this manner. Any human error in filing returns or other omissions if any needs to be dealt outside prosecution or penalty provisions.
3. The filing of 37 returns is too much paperwork for MSME and SME sector. The information is same as being submitted today so why multiple filling of returns. The same number of returns to be filed as is in VAT regime.
4. Valuation rules need to be standardised and GST rates to be applicable accordingly. Same or similar product should not attract GST on max selling price. This will be highly inflationary.
5. E-way bill exemption limit to be raised to 5.0 lacs. E-way bill is deemed to be very cumbersome to implement in day to day business and will effect business transactions.
6. Reverse charge mechanism has no limit as is for GST for 20lacs. Therefore, even if some company avails service of transport for 2000 from a tempo; he has to register under GST due to reverse charge.
Of the 55 associations present across Maharashtra, About 20 associations represented individual cases of issues related to rates and they were as follows:
· Sudhirbhai Jain from BME alongwith Hemant Parekh, President of BME and Ashok Bafna explained the issue