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Traders' body complains to Prime Minister about GST circular of Maharashtra

Updated: Jan 15, 2021 07:09:42am
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Traders' body complains to Prime Minister about GST circular of Maharashtra

New Delhi, Jan 15 (KNN) The Confederation of All India Traders (CAIT) has complained against the Maharashtra Government's circular to Prime Minister Narendra Modi.

According to traders' body, the circular is aimed to distort unified Goods and Services Tax (GST) Taxation System and is a violation of federal spirit of GST.

''It will also pave the way for other states to interpret each circular of the Central Board of Indirect Taxes and Customs (CBIC) in their own way which will be much prejudicial to the GST tax system,'' CAIT said on Thursday.

CAIT National President B C Bhartia and Secretary General Praveen Khandelwal in communication to PM Modi said that a circular Maharashtra Government issued on January 12, 2021 stated that till date they were adopting CBIC circular for implementation of GST, however, now onwards they do not adopt such circulars. They will examine the clarification by CBIC, and after examination of the same they will issue their own circular.

While expressing serious concern, the duo said that this step of the Maharashtra Government is a serious issue which is much against the basic fundamentals set out and agreed between Centre and States prior to implementation of GST.

''If states behave like this then each state will adopt separate policies for GST implementation in their states and the traders will have to be updated for all the states every moment which is an uphill task and will make the already complicated GST tax system further much more complicated resulting into either untimely compliance or no compliance,'' they  added.

''It is noteworthy to mention that a large number of traders across the country are engaged in inter-state business and such practice if adopted by every state then this will cause grave harm and damage to the businessmen who are already struggling for their survival.  Further, It will not be trade friendly and the same would be totally against the purpose for making GST as One Nation- One Tax,'' the duo said.

Both Bhartia and Khandelwal suggested that the system of issuing circular from CBIC should remain the same and should be binding on all states. Instead, CBIC may send the draft to states before finalising and issuing any circular and ask for their comments mentioning a time span.

''If no comments are given by the states within a week's time it will be deemed to be accepted by them. This will be a better way of taking consensus of all states and will maintain the spirit of the federal GST. If any urgent Circular is to be issued the delay of which would affect  revenue then  such issues may be clearly defined  and consensus of the same may be taken from all states,'' they asserted.

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