• Kandivali West Mumbai 400067, India
  • 022 39167251
  • support@email.com
February 12, 2021

CAIT calls for Bharat Band on 26th February against GST

by CA Shivam Jaiswal in GST

CAIT calls for Bharat Band on 26th February against GST

The main motive of introducing GST was to reduce the cascading effect of tax on the cost of goods and services and create a common, cooperative and undivided Indian market to make economy stronger and powerful. The GST system combined Central excise duty, additional excise duty, service tax, State VAT entertainment tax etc. under one banner. It will impact tax structure, tax incidence, tax computation, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system. It was one of the biggest taxation reform that took place in India. However, GST system has also many issues since its inception.

Confederation of all India Traders (CAIT) was formed to render best possible assistance to Trading Community. CAIT has called for a Bharat Trade Bandh on 26th February against the goods and services tax (GST). The All India Transport Welfare Association (AITWA), one of the foremost apex bodies of India’s Road Transport Sector, has also extended support to ‘Bharat Bandh’ and hold “Chakka Jam”, or road blockade, on the same day.

Why has CAIT called for Bharat Trade Bandh?

  • According to CAIT, GST is one of the most complex taxation system which has resulted in misery to traders.
  • Repeated statements of CAIT were never responded by the GST Council, which has generated a feeling among the traders across the country that the council has its own agenda and it is not interested in obtaining cooperation of traders.
  • CAIT highly regretted such dismal picture of GST and which compelled the trade leaders attending the conference to call for a Bharat Trade Bandh.
  • Besides the complicated tax structure, the traders’ rage is directed at the absence of a consultative mechanism both at centre and states which is against the declared policy of PM Modi for taking stakeholders into confidence while framing a policy or the rules and minimum government-maximum governance.
  • CAIT national president BC Bhartia and secretary general Praveen Khandelwal and AITWA chairman Pradeep Singhal jointly announced the stir plan on the opening day of a three-day national trade conference at Nagpur.

Issues of CAIT against GST Council

The GST Council has not only pampered various anomalies and distortions in ‘one nation-one tax’ principle of GST but has not taken any step to simplify the GST taxation system.

The only aim of the GST Council so far was how to get more revenue and how to load the traders with more compliance burden without considering the ground realties of trade in India.

What is the expectation of CAIT?

The traders concede that GST is a progressive taxation system but want it to be free from glitches, anomalies, disparities and distortions.

Time and again, CAIT has expressed its view that the tax net of GST should be widened resulting into more revenue to the government but it is possible only when the GST is simplified to the extent that even a small trader operating his business activities at remote area could also be able to comply with GST without any external help.

The current state of increased administrative tax compliance burden on traders and a locking-up of working capital due to slow tax refund processing, has led to high compliance costs because the prevalence of multiple tax rates implies a need to classify inputs and outputs based on the applicable tax rate.

Now it is to be seen whether this strike has any effect on the affairs of GST or not.

Enter your email address:

Subscribe to faceless complainces

Please follow and like us:
Pin Share
Follow by Email