The Government of India has made all preparations to launch Goods and Service Tax (GST) at midnight of June 30 and July 1 in the presence of President of India Pranab Mukherjee at the Central Hall of Parliament.
The launch programme of GST will be an hour long in which President of India Mukherjee and Prime Minister Narendra Modi will speak on GST.
GST is an Indirect Tax for the entire country which will be One India, One Tax. It is a single tax on the supply of goods and services, right from the manufacturers to the consumer. This new tax will replace taxes levied by the Central and State governments. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. The GST rates are 0.25%, 5% 12%, 18 and 28%.
The new tax will be effective from July 1, but the traders and businessmen are not ready to accept it. They are saying they are not against GST, but needs times understand and implement the same in the system. They also have many doubts and want clarification, but they say are confused over it.
In Rajasthan, all saris and textile traders have closed their firms protesting GST. Rajasthan Saris and Textiles Association president OP Taneja said that “we are closed till June 30 as 5% tax will be levied on saris and textiles (unstitched clothes), which so far has been tax free.” Saris are given on job work on which 5% has to be imposed and people on job works do not have computer and bill books and they cannot give us bills. He said the demand is that let the government impose maximum tax at the manufacturers end. The four-day bandh will affect to the tune of approximately Rs 2000 crore.
Federation of Rajasthan Trade and Industry (FORTI) and around 50 trade and industry bodies will support Bharat Bandh on June 30. According to FORTI state president Suresh Agarwal, all businessmen want that GST should be transparent, transparent and less tax rate so that small traders do not face any problem. All trade and industry bodies demand that rules of GST should be simplified and return should be filed once in three months.
Similarly, Rajasthan Khadya Padarth Vyapar Sangh protesting GST has decided to keep all grain markets (anaj mandis) closed till July 3. Sangh chairman Babu Lal Gupta said there are many provisions in the GST which has to be redressed by the Government of India, as these provisions are not suitable for small traders.
Meanwhile, Rajasthan Petroleum Dealers Association (RPDA) protesting daily rate change by the oil companies made no purchase of petrol, diesel and fuel from the oil companies on Wednesday (June 28) and protested calculation of GST on aggregate turnover.
RPDA in a letter to Union Finance Minister Arun Jaitley mentioned that when petrol and diesel has been kept out of GST and now there is information that GST will be levied on the aggregate turnover due to which now petroleum dealers have to get registered in GST. It was written that if government want to take petrol and diesel in GST then the RPDA suggested that GST should be levied on petrol and diesel and if government is not ready to take it under GST then aggregate turnover should also be kept out of GST net.
Meanwhile Jaitley in Delhi on Tuesday said that the industry needs to prepare itself for the switchover to GST and it is not a complicated process. He also told that whenever change comes there will be some challenges too. The companies will be allowed to file late returns for the first two months, he added.