Tax rate should be instituted on a uniform basis, multiple tax slabs not in the interest of MSMEs: FOPSIA
New Delhi, Nov 14 (KNN) With the Goods and Services Tax (GST) Council shuffling items from 28 per cent tax slab to 18 per cent tax slab after the previous meeting, the Micro, Small and Medium Enterprises (MSMEs) bat for a uniform tax rate and easier compliance norms.
Talking to KNN, Badish Jindal, Chairman of the Federation of Punjab Small Industries Associations (FOPSIA) expressed dissatisfaction on the recent GST rate revision. He said that even though GST rates had been slashed, the confusion in the market still persists and market sentiments had been disturbed .
Uncertainty is still looming in the market as the GST rates for same goods are different for different industries, he added.
He furthers said that the GST council didn’t take into account the traders who had already paid the 28 per cent tax on the goods as the council didn’t make provisions for immediate credit refund to those traders. According to the chairman the composition scheme for traders is of no use to the MSMEs as it makes thing uneven.
Earlier eyeing at relief, the Goods and Services Tax (GST) council on Friday reduced over 80 per cent of the items that were there earlier in the 28 per cent tax slab. The government also announced reduction in levy under the composition scheme for the Micro, Small and Medium Enterprises (MSMEs) and traders. (KNN/AG)