GST Minister TS Singhdeo holds a meeting with Business organization representatives.
Raipur. Today, Commercial Tax Minister TS Singhdeo held a meeting of representatives of business organizations at Naveen Vishram Bhawan, Civil Lines. In this meeting, representatives of business organizations were invited for suggestions to reconcile the tax rate to meet the shortfall in revenue. Chhattisgarh Chamber of Commerce and Industries Raipur, Confederation of All India Traders, Raipur Iron and Steel Trade Association, Chhattisgarh Steel Re-rollers Association, Chhattisgarh Iron and Steel Agent Association, Chhattisgarh Mini Steel Plant Association, Ravi Bhavan Traders Association, Chhattisgarh Computer And Media Dealers Association, Chhattisgarh Electronics Traders Association, Chhattisgarh Mobile Association, Dumtarai Business Developers, Dumtarai Traders Welfare Federation, Raipur FMCG Distributor Association, Raipur Timber Merchant Association, Raipur Plywood Traders Association, Chhattisgarh Timber Traders Association, Marble and Tiles Professional Association, Raipur Representatives of Crusher Operators Association, Wholesale Grain Traders Welfare Association, Raipur Dal Mill Association, Chhattisgarh Pradesh Rice Millers Association were invited.
In the first session, GST Minister TS Singhdeo, while addressing the representatives of business organizations, said that after Covid impacted the economy, the burden of GST collection and tax collection was directly on the states. And especially Chhattisgarh suffered a loss. The state has a loss of ₹ 2500 crore in 3 items (Paddy, Coal and Iron). He said that petroleum products can also come under GST in the coming time. If the state government needs 25% from VAT, if GST is 28%, then the state government will get only 14% of the revenue, the central government will keep the remaining. GST Minister T S Singhdeo further said that due to the removal of protected income provision, the GST regime in Chhattisgarh had a very adverse effect. If the compensation provision gets removed, then if the income of the state increases by 7% every year, it will not get 7%. If the income increases by 9%, then we get 5%. In the first two years, there was some revenue loss. One of the reasons is that the entire burden of the discount falls on the consumer itself, the rate that the government levies the customer will pay. After this, GST Minister TS Singhdeo said that the views of the representatives are needed to improve the system for business, governance and citizens in Chhattisgarh.
In the first session, on behalf of the Chhattisgarh Chamber of Commerce, Executive President Rajendra Jaggi submitted a letter and expressed his suggestion that different tax slabs for the same product create a lot of complexity. For instance, the slab of GST is 5% for clothes worth ₹1000 and 12% for more than ₹ 1000. Similarly, there are two slabs of 12% and 18% in agricultural implements and three slabs of 12%, 18% and 28% in cycles which require simplification.
After this, in the next session, the representatives of the bullion association said that GST had made things simple. It is paid one-time, otherwise, various taxes had to be paid in different states earlier. In the bullion traders, all the people file returns and are bringing awareness at the association level. He also said that there are some changes in the rules regarding sections 411 and 412 are needed.
Along with this, the professional organization representatives of CAT suggested that the process of income tax returns and GST slabs should be simplified. Plywood Association recommended simplification of GST slabs. Computer Association and Mobile Association jointly proposed transparency regarding the online purchase and the process of tax on it. The Grain Business Association and Rice Mill Association representatives suggested that almost 100 per cent of the Chhattisgarh government’s paddy should get converted into rice, which should be kept free from tax. GST Minister TS Singhdeo carefully listened to the ideas and urged those whose suggestions are pending to give written proposals in the next two to three days so that the State Government can bring the business organization before the Central Government.