The Centre's slew of measures to provide much-needed relief to GST payers has evoked mixed reactions. Some bodies representing traders and Small and Medium-sized Enterprises (SMEs) said the steps are quite inadequate to stay afloat, especially during the faltering growth and demanded more relief. However, the Maharashtra Finance Minister, Sudhir Mungantiwar, who is also the member of GST Council, said the government's move will help remove difficulties faced especially by SMEs and traders in filing statements.
They were reacting to the Centre's decision to make composition scheme simpler for businesses with turnover up to Rs 1 crore, slash tax rates for 27 items, allow smaller businesses with turnover up to Rs 1.50 crore to pay tax and file returns quarterly instead of monthly.
Mungantiwar said, ''Taxable person is the most important stakeholder in the taxation ecosystem. A simple tax compliance system will certainly yield more tax revenue for the Centre as well as the state.'' He also reminded that in his letter, dated October 3, to the GST Council Secretary Hasmukh Adhia he had urged that taxable persons having an annual turnover of less than Rs 1.5 crore be permitted to submit sales and purchase statements on quarterly basis and the simple return filing form 3B and payment for these dealers be on monthly basis.
Further, the Federation of Retail Traders Welfare Association welcomed the Centre's announcement allowing traders of Rs 1.50 crore turnover to file returns on a quarterly basis and threshold for composition scheme increased to Rs 1 crore. However, the Federation said there was hardly any cut in GST rates to bring down the prices of consumer products.
Federation president Viren Shah told DNA, "There are 88,000 items under GST and the slab of only 27 items have been reduced. GST reduction was required especially for all those items which are under the 18 to 28 per cent tax slab and those items should be brought down to 3 to 12 per cent bracket. If this is not done, then the festival season will be dull for traders.'' He asserted that the Centre needs to give further relief especially when small traders are facing stiff competition from online players.
On the other hand, the SME Chamber of India said that it was expecting more relief for smaller and medium enterprises especially from manufacturing sectors. The Chamber founder & president Chandrakant Salunkhe said, "We have already sent an appeal to the finance minister to reduce the rate of various industrial and consumable products, which are very useful and important to boost the industrial growth. The present GST rates are also impacting the rural entrepreneurs. Many companies and retail units are finding it difficult to continue their operations."
Salunkhe added that SMEs have also been struggling in the banking and finance sector and are facing hurdles to get trade receivables from large corporate and government PSUs.
Still expecting
The SME Chamber of India said that it was expecting more relief for smaller & medium enterprises especially from manufacturing sectors
Centre has decided to make composition scheme simpler for businesses with turnover up to Rs 1 crore, slash tax rates for 27 items et al
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