Dual structure of GST unacceptable, says national traders’ body

The Confederation of All India Traders (CAIT) has demanded a ‘single tax, single authority’ system and said that the proposed dual structure in the Goods and Services Tax is unacceptable, even as the Goods and Services Tax (GST) Bill was passed by the Lok Sabha on Wednesday.

At the national governing council meeting being held here, Praveen Khandelwal, Secretary General, CAIT, while addressing the press said that the dual structure, with a Central GST levied and collected by the Centre (CGST), and a state GST administered by the States (SGST) would encourage nepotism and corruption, and would not achieve the purpose of simplification of the tax structure which the GST aims for.

Demands

Other demands include the setting up of a separate single ministry for internal trade, and a National Trade Policy for retail trade.

The body also demanded the setting up of a joint working group with traders to re-visit the Food Safety and Standards (Amendment) Bill.

The CAIT is set to meet Minister of Urban Development Venkaiah Naidu to request that the traders’ body be made a stakeholder in the implementation of the Smart Cities scheme.

It has welcomed the setting up of the Micro Units Development and Refinance Agency (MUDRA) Bank stating that it would ease difficulties in accessing credit for the traders.

Contribution to GDP

“With a contribution of 45 per cent to the GDP, we are the real drivers of the economy. However, so far, only 4 percent of the trader community has had access to finance from banks. With the setting up of the MUDRA bank, we are sure our contribution will increase to 60 percent of the GDP,” said Mr. Khandelwal.

The traders’ body have said that they must be recognised as tax collectors, and be extended social security benefits. The government must promote digital literacy and e-empowerment among traders, said Mr. Khandelwal.

B. C. Bhartia, President, CAIT, announced a financial literacy campaign, with a special focus on women.

The meeting was attended by various representatives from 22 States, and is being held in Puducherry for the first time.