WFYI logo

Delhi Deputy CM Highlights Trader Concerns Over GST Implementation

Delhi's Deputy Chief Minister, Manish Sisodia, has called for a reconsideration of the GST framework to better address traders' concerns, emphasizing that tax ambiguity can lead to corruption. He also proposed including real estate and consumer durables under GST with lower tax slabs. Sisodia criticized the dual control of GST and urged for thorough deliberations before implementation, while the CBEC Chairman advised against seeking continuous exemptions under the new user-friendly tax regime.

📖 2 min read read🏷️ GST Concerns and Implementation

Delhi's Deputy Chief Minister, Manish Sisodia, has urged the government to reconsider the Goods and Services Tax (GST) framework and prioritize the issues faced by traders. He emphasized that instead of focusing solely on the implementation deadline, the GST Council should address the practical challenges for businesses and traders nationwide. Sisodia stated that vague tax structures foster corruption and predicted that the GST rollout might replicate the failures of the earlier demonetization initiative. He also advocated for including land and real estate under the unified tax system and placing consumer durables in the lowest tax bracket to ensure a consumer-friendly approach.

Dual Control of GST Questioned

Sisodia expressed disapproval of the GST's dual control mechanism, asserting that it undermines the tax's core goals. He called for thorough deliberations and cautioned against hasty implementation driven by deadlines. He also pledged to raise these concerns in future GST Council meetings. Conversely, CBEC Chairman Najib Shah advised industries against requesting continuous GST exemptions, as most would cease to exist under the new system. Shah clarified that the anti-profiteering clause was being misinterpreted, suggesting that the new tax structure would consolidate various indirect taxes, making the law simpler for users.

Preparing for GST Implementation

With the GST rollout deadline established, businesses must proactively prepare to avoid being unprepared for the transition. Key steps can be taken to ensure readiness for GST:

  1. Complete your GST enrollment promptly. For details on the enrollment process and its importance, refer to this guide.
  2. Strategically plan your logistics and warehousing needs. A comprehensive analysis of GST's impact on logistics and warehousing is available here.

Frequently Asked Questions

What is GST in India?
GST, or Goods and Services Tax, is an indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes previously imposed by the central and state governments.
How does GST benefit the Indian economy?
GST aims to create a unified national market, reduce tax burden on consumers through input tax credit, improve tax compliance, and boost economic growth by streamlining the tax structure.
What are the main components of GST?
The main components of GST in India are Central GST (CGST) levied by the Centre, State GST (SGST) levied by the States, Union Territory GST (UTGST) for Union Territories, and Integrated GST (IGST) for inter-state transactions.
Who is required to register for GST?
Businesses with an annual turnover exceeding a prescribed threshold (which varies by state and type of goods/services) are generally required to register for GST. Certain specific businesses must register regardless of turnover.
What is an Input Tax Credit (ITC) under GST?
Input Tax Credit allows a taxpayer to reduce the tax paid on inputs (purchases) from the tax payable on outputs (sales). This mechanism prevents the cascading effect of taxes, where tax is levied on tax.