Published On : Thu, Nov 3rd, 2016

Four tax rates under GST will contain inflation

The Confederation of All India Traders (CAIT) said that proposed four tax rates under GST is probably designed to contain inflation under GST. However, decision on Exempted goods, Zero rate goods and levy of tax rate on Gold-Silver is yet to be known. From the point of view of traders it is more important to know the classification of goods under different tax rate under GST as only then final shape of GST will emerge. However, the CAIT has categorically demanded that irrespective of rates, there should be one Single return and Single Authority to control the taxation system and only then the tax net will be widen and revenue will be increased.

CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal said that GST is a technology led taxation system with an inbuilt e-compliance fundamental in its design. However, majority of the country’s trading community are yet to adopt computerisation for maintaining books and filing tax. In this light,the Government should immediately began talks with trading community and empower them with requisite knowledge and education as to how the GST will be complied seamlessly and what preparations are needed by the traders to embrace GST.

They further said that GST taxation system is entirely different from current taxation system. It will lead to the merger of Excise, Service Tax, VAT and other taxes under GST, coupled with its e-compliance in totality, it is all the more necessary to equip the traders and other verticals of non-corporate sector with adequate knowledge about the procedures and compliance formalities under GST. Like officials training, the traders should also be trained for easy compliance of GST.