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11/11/2017 03:18pm

Latest revisions by the GST council fail to woo small traders, ad-hoc nature of reforms not in the interest of MSMEs

image Latest revisions by the GST council fail to woo small traders, ad-hoc nature of reforms not in the interest of MSMEs

New Delhi, Nov 11 (KNN) With the Goods and Services Tax (GST) Council announcing relief after the council meeting in Guwahati, the Micro, Small and Medium Enterprises say that the revisions fail to meet the expectations of the economy.

Talking to KNN, V.K Agarwal Past President of Federation of Indian Micro and Small & Medium Enterprises (FISME)  highlighted the concerns around the ongoing ride of the new tax reform

Agarwal said that the nature in which the GST Council is addressing the concerns is not very rational.

"It has become a lobby driven approach, only the industry that is able to pressurize and lobby is getting their voices heard whereas the small and micro industries are yet to be heard" he said.

Agarwal further highlighted that the government by constantly revising the items under different tax slabs hints towards the inability of the tax office in rightly placing the items prior to implementation.

Commenting on the compliance burden that still prevails, he said that despite repeated requests of the industry, the units are asked to comply with multiple norms which further makes it difficult for the units to focus on their production.

"The government expects us to file multiple entries at different points under the new taxation. Micro units that operates on a one man show format, there isn't the luxury of such infrastructure" he added.

Calling for a rationalisation instead of relief, Agarwal said that the government needs to explore ways for proper rational behind the placement of items under different tax slabs.

Eyeing at relief to the different stakeholders and sectors of the economy, the Goods and Services Tax (GST) council yesterday reduced over 80 per cent of the items that were there earlier in the 28 per cent tax slab.

Also the government announced reduction in levy under the composition scheme for the Micro, Small and Medium Enterprises (MSMEs) and traders. (KNN/DA)

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