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December 25, 2020

Amendments in GST making it a complicated Taxation system Says Confederation of All India Traders

by CA Shivam Jaiswal in GST

Amendments in GST making it a complicated Taxation system Says Confederation of All India Traders

Copy of Letter of Request to FM from Confederation of All India Traders

With deep regret, we are constrained to bring it to your kind and urgent knowledge that recent notification of GST incorporating Section 86-B , which levies a mandatory payment of 196. to be deposited where the monthly turnover is more than Rs. 50 lakh is a counter productive step which will load the traders further with burden of compliance and also much financial obligation. The traders across Country are deeply in resentment in certain GST issues which are being enforced without having consultation with traders and without realising the on ground implications.

In the light of current scenario when the internal trade is highly disturbed due to repercussions of COVID and traders are fighting for survival of business, it is strongly urged that Rule 86B may please be deferred to be implemented from 1st January, 2021.

We strongly lodge our protest for certain amendments including above amendment which in itself is a killing provi­sion and request you to defer it for the present. We also request you to extend the date of filing GST and Income Tax Audit Returns from 31st December, 2020 to 31st March, 2021.

We would also like to mention that any amendment in a, tax law should be implemented from beginning of fiscal year instead of amending again & again during the in between period of the year. Since the entire taxation system is computerised, it takes time for the Government portals to update whereas in the other hand traders have to depend upon software providers to include the amendments.

Gradually, the GST again is culminated into a cobweb for the traders and it is a general feeling that instead of simple tax it is becoming a much complicated system putting greater compliance burden on the traders, much against the vision of Hon’ble Prime Minister Shri Narendra Modi who has always advocating strengthening of small businesses. Unfettered and discretionary powers including cancellation of GST registration and power to arrest are vested to of­ficials and its misappropriate use can’t be ruled out.

However, we fully agree that strict action must be taken against alleged tax evaders but on account of few people, ev­eryone should not be subject to harsh provisions and it is against the principle of natural justice.

We are more willing to join hands with the Government in widening the tax base and yielding more revenue to the Government but certainly we advocate strongly for a structured consultation process between the Government and business community.

You have always remain a vocal supporter of small businesses but things in GST are becoming worst. Therefore, we request you to please defer implementation of Sectikn 86-B and accord us an earliest appointment to discuss issues concerning GST threadbare and to explore possibilities of joint working on GST and other laws in larger interest of economy and the nation.

We are sure that it will receive your kind attention and you will be kind in taking necessary action and also accord a convenient appointment at the earliest

National Secretary General, Confederation of All India Traders

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