Traders may get a sigh of relief as the highest rate under the GST regime, which is 28 per cent, would soon become a thing of the past. Bihar Deputy Chief Minister and GST Network panel head Sushil Kumar Modi assured this saying that it is doable in the near future.
Modi also informed that looking at pace of revenue collection coming under the regime within two-three years no State would come to the Center seeking compensation due to revenue shortfall adding that the shortfall of Jharkhand has been clocked to 17 per cent, which was 26 per cent during 2017-18.
Addressing traders and businessmen of Jharkhand under the banner of the Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) on Monday, Modi said that in future only three rates would remain in practice.
“Rate of tax was almost similar during the pre-GST era but it was hidden since excise tax was not evident. Still the GST council is of the opinion that only three tax slab should be there. The 28 per cent slab is a matter of just few months or a year,” said he.
The panel chairman on the occasion also outlined some of future steps going to be implemented in the taxation system. He said that the businessmen would be required to file their returns one in three months against monthly system at present. “The traders doing business up to Rs 5 crore would have to file quarterly return which covers 92 per cent of the trade taking place at present in the country. ‘Sahaj’ and ‘Sugam’ are on the way to ease your concerns. Zero tax payers need to just send an SMS. These are some of the reforms we are working on,” said Modi.
Traders on the occasion also expressed their concerns before Modi to which he said that the new system is fully online which may be unfriendly for some. “Now the tech savvy people would find it easy. Also against exception of Rs 1.5 crore now the limit is Rs 20 lakh. Exempted list is also not uniform across all the States,” said he.
Modi also cautioned the community against generating fake invoices and claim return which is coming into light form different parts of the country. He said that infusion of IT has been done so strongly that no evasion is possible to hide for longer period of time. “Another change is coming in the form of RFID tag which would be put on all the carriers. This would catch all the trucks passing any toll with
items loaded and match it with the invoices. I appeal you all to abide by the system and do away the earlier practice for betterment of your business,” said Modi in the presence of Rajya Sabha MP Mahesh Poddar and Chamber president Deepak Maru.
Modi while terming the tax reform largest of the world lauded Prime Minister Narendra Modi and Union Finance Minister Arun Jaitely for implementing the system despite having so many odds and challenges and considering political difference.
