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Published on:
February 25, 2023
By
Prudhvi Raj

AAP’s Manish Sisodia wants to address traders’ concerns under GST

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.

What are the concerns of traders?

The trading community has raised several concerns about the GST, including:

  • The complexity of the new tax system
  • The additional costs associated with compliance
  • The impact on cash flow
  • The potential for increased competition from larger businesses

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.

How is the AAP addressing these concerns?

The AAP has proposed several solutions to address the concerns of traders. These include:

  • Simplifying the tax system
  • Reducing the compliance burden on small businesses
  • Providing support to traders to help them comply with the new system
  • Creating a level playing field for small and large businesses

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.

What can traders do to get ready for the GST?

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:

  • Register for GST: All traders with an annual turnover of Rs 20 lakh or more are required to register for the GST. Traders can register online at the GST portal.
  • Get a GST-compliant invoice system: Traders will need to issue GST-compliant invoices to their customers in order to claim input tax credit.
  • Ensure accurate record keeping: Traders will need to maintain accurate records of their purchases and sales in order to claim input tax credit.
  • Get professional help: Traders who are struggling to understand the GST can seek the help of a tax professional to ensure that they are complying with the new system.

Conclusion

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.

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Updated on:
March 16, 2024