India is currently in the midst of a massive tax reform called the Goods and Services Tax (GST), which aims to unify the country’s tax structure and make it simpler and more efficient. The GST will be implemented on July 1, 2017, and businesses across the country are scrambling to get ready for it.
One of the groups that has been particularly vocal about their concerns over the new tax regime is the trading community. Many traders fear that their businesses will be negatively impacted by the GST, and have been calling for the government to address their concerns.
The Aam Aadmi Party (AAP) has taken up the issue and is working to address the concerns of traders. Manish Sisodia, the Deputy Chief Minister of Delhi and a senior AAP leader, recently met with the trading community to discuss their concerns and come up with solutions.
The trading community has raised several concerns about the GST, including:
Many traders are worried that they will not be able to afford the cost of compliance, and that the new tax system will be too complicated for them to navigate. They are also concerned about the impact on their cash flow, as they will now have to pay taxes on their goods and services up front, rather than receiving credit for the taxes paid later.
Large businesses, on the other hand, may have an advantage under the new system, as they will be better equipped to deal with the additional compliance costs and may be able to offer their goods and services at lower prices.
The AAP has proposed several solutions to address the concerns of traders. These include:
Manish Sisodia has also suggested that the government should consider delaying the implementation of the GST if it is not ready to handle the transition. He has urged the Centre to take a more collaborative approach, and work with state governments and the trading community to ensure that the GST rollout is smooth and successful.
With the GST just around the corner, traders need to act quickly to ensure that they are ready for the new tax regime. Here are some steps that traders can take:
The GST is a significant reform that has the potential to transform the Indian economy. However, it is important that the concerns of all stakeholders are addressed in order to ensure a smooth transition. The AAP’s efforts to address the concerns of traders are a positive step in this direction, and it is hoped that the Centre will take note of their suggestions.
Clarification on the Formats of Forms GST PMT-06 and GST PMT-07
Presumption of Documents in Court Proceedings Under GST
Provisions related to Discount for valuation under revised draft GST Law