Goods and Services Tax: Who’s protesting, over what
Traders in sectors such as retail, textiles and road construction are protesting the Goods and Services Tax (GST) rollout as they are unhappy with the rates applicable to them
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New Delhi: Unhappy with either the GST rates proposed or the requirement of rigorous record-keeping, traders in a few sectors in specific states are protesting the rollout of the Goods and Services Tax (GST) from 1 July.
But the governing body for the uniform indirect tax, the GST Council, is of the view that GST rates are fixed as close as possible to the current tax burden on goods and services. Also, small traders, manufacturers and restaurants below annual sales of Rs75 lakh can sign up for a presumptive tax scheme and pay a 0.5% to 2.5% tax on sales and avoid the compliance requirement of large businesses.
A look at the sectors in specific states that are protesting the GST rollout:
|Increased compliance burden on traders, who are on three-day protest from Tuesday.|
|Gujarat||5% GST rate on job work given to allied sectors. Traders on three-day strike from Tuesday.|
|Differential GST rates on yarn, fabric, which allegedly will benefit only large integrated mills.|
|Retail||Gujarat||Overall impact on traders|
|Road construction||Gujarat||State level contracts have no “change in law” clause*. Developers have to absorb any extra tax cost due to GST.|
|Traders are protesting the 28% GST rate, on three-day protest from Monday.|
|Diamond||Gujarat||Diamond traders are demanding lowering of 3% GST rate.|
*The “change in law” clause may enable developers to pass on extra tax costs.