The rolling out of Goods and Services Tax (GST) from July 1 has evoked mixed reaction with several traders and entrepreneurs while welcoming the decision wanted more time for familiarisation with the new tax regime.
Expressing dissent over the rates for various categories finalised by the GST Council, they said they were still in need of clarity on its implementation. “We want a moratorium for one year in its implementation. First our doubts should be cleared and the decision for 100% exemption to agriculture and horticulture products, almost 4 to 18% tax is imposed on value addition, processing and grading,” Vijaynagar Biotech Ltd CEO and Managing Director D. Tirupathi Raju told The Hindu on Tuesday. The hoteliers, who observed a daylong restaurant bandh, are peeved at finalisation of high rate of taxation with the decision to charge 12% GST on non-AC and 18% on AC hotels. The cashew industry, already hit by imposition of import duty, will have to pay 12% GST on raw nuts and kernel and 18% on flavoured (roasted) cashew. “We will represent to the GST Council to reduce it,” Madhav Sure, finance and marketing head of Arle Cashew Ltd, said.
To make it simpler
Vizagapatnam Chamber of Commerce and Industry president A.V. Monish Row said it was well-known that GST would subsume 14 indirect taxes making the system simpler reducing corruption. With input tax credit on both GST and SGST (State GST) the current double taxation would be eliminated.
“Goods can travel freely inter-State thereby cutting down long waiting lines at the borders as has been the case for decades. Compliance will be easier as all steps of GST will be online as well as time limits have been prescribed for all procedures with the department.
With the rates and slabs finalised, some sectors will see a marginal rise in prices. GST crossed all the legislative hurdles and what needs to be looked at is implementation, not only from viewpoint of preparedness but also from the point of view of some disruption that it can cause in the short run in terms of small, medium enterprises (MSME).
Long-term gains
Mr. Row said “in the long-term, there are lots of gains to be reaped from GST. Focus should be on relentless implementation by the government. The trade and industry should also gear up so as to be ready to implement this far-reaching legislation.”
