Consult Traders Before Changing Tax Rates: CAIT To GST Council

The Confederation of All India Traders (CAIT) on Wednesday urged Union Finance Minister Nirmala Sitharaman that traders should be consulted before making any changes in gross domestic product (GST) tax rules. 

The trade body said that the recommendation of gross operating margin to bring unbranded food grains under the tax slab of 5 per cent will be a regressive step and in this matter, the status quo should be maintained. 

The CAIT also said that textiles and footwear should be kept in the tax slab of 5 per cent. Bread, cloth and housing are essential items for common people and if tax is imposed on these items, it will create a direct financial burden amid inflation, it said. 

BC Bhartia, National President, CAIT and Praveen Khandelwal, Secretary-General in a joint statement said that when the figures of GST revenue are increasing every month, there is no justification for imposing more GST on any commodity. 

They stressed that in the present circumstances, it is necessary that the GST tax laws and rules should be reviewed afresh in totality and the discrepancies and disparities in tax rates should be eliminated. 

The trade leaders said that it appears that the GoM has been one-sided in recommending the abolition of a few exemptions on GST for many items and no opportunity was given to traders to express their view before GoM speaks that committee has taken the side of different states only.

"Any unilateral decision will be against the ease of doing business and participatory governance of Prime Minister Narendra Modi," they added.