Lauding the government’s move to cut Goods and Services Tax (GST) rates on over 200 items, the Confederation of All India Traders (CAIT) has said that the move will be a game changer in simplifying the tax regime and encourage its wider adoption. It added that the move will also provide a big relief to traders who were depressed lot post GST implementation.
CAIT further noting effects of the move on the government’s revenue said that there will be a loss of about Rs 34,000 crore due to this. However, traders' body ensured that the trading community will compensate for such losses by making all efforts to widen the tax net base, if it is taken in confidence and various procedures are eased. CAIT while listing the move’s benefits for the industry also pointed on non- performance of the GST portal and expressed a need to look on this issue immediately.
The GST Council in its 23rd meeting, slashed the tax rate on 178 items from 28% to 18%. Only 50 items have been left in the 28% bracket that include products in luxury and sin goods category and some with large revenue implications such as tobacco products, automobile, washing machine and air-conditioners.