MADURAI
Tamil Nadu Chamber of Commerce sought abolition of the 28% Goods and Services Tax slab and said it should be applied only on sin or luxury items. In a press statement issued here, the Chamber said the highest tax levied should be restricted to 18% as it would improve compliance and augment tax collection.
The Chamber had submitted a pre-Budget memorandum to Union Finance Minister Nirmala Sitharaman in this regard. “For other goods barring the exempted category, there should be only three other GST rates: 15%, 12% and 5% based on their necessity and need,” said senior president of the Chamber S. Rethinavelu.
He said the Centre should take efforts to ensure that invoices were generated through a portal in Goods and Services Tax Network (GSTN). “Currently, we are generating our own invoices and uploading them on GSTN. We have to dedicate manpower to ensure that invoices are properly uploaded and have no choice but to do it twice a month. We have no choice but to recruit an auditor,” he said.
Small business establishments, which could not afford to engage auditors, will eventually move away from business, he said.
He added that though the idea to roll out a single tax was good, no organisation had clarity on the exact amount of GST on each product. “Stitched fabrics with embroidery has different rate than stitched garments. Why can’t there be a uniform tax for all garments?” he asked.
Mr. Rethinavelu also said hundreds of cases were still pending with the GST Council. “The council’s decision in a single case is not binding on all. This makes the entire appeal process taxing. Business owners have time only for litigating and filing taxes,” he said.