Indore: “New indirect tax regime Goods and Service Tax (GST), scheduled to come into effect from July 1, will have multiple electronic mode of payments of tax, interest and penalties. In existing VAT system payments are being made only through banking channels,” said senior tax consultant RS Goyal while addressing a GST awareness programme organised by Plywood and Laminates Traders Association of Indore on Monday.
Goyal went on to throw light on various crucial aspects of GST. He said “Traders receiving advance payments against purchased goods would attract tax liability and the buyer-trader can get input tax credit only when tax will be charged separately in the bill after making the supply. If a buyer-trader fails in making payment of goods purchased in 180 days, then the input tax credit gained on purchased goods would be reversed.”
Goyal further elaborated that substantial provisions are being made in GST for such traders not having any tax payment facility. In that scenario the traders can file returns without depositing the tax, but on the basis of such returns, buyer-traders could not get benefit of input tax credit. If any trader takes benefit of composition, he has to deposit the VAT against the goods purchased from outside the state or from unregistered trader before implementation of GST. Traders, who could not claim for input tax rebate in the returns, can get such rebate in September next year.”
Explaining about an important provision in GST for suppliers of e-commerce companies, he informed “If any person sells goods through e-commerce operator he can not get exemption of Rs 20 lakh for getting registration. His eligibility for registration begins with day he start selling his goods through e-commerce platform.”
General secretary of Ahilya Chamber of Commerce and Industry, Sushil Sureka and treasurer of the organisation Rasnidhi Gupta and Nilesh Gupta were among others present on the occasion.
Traders strike on Thursday
Ahilya Chamber of Commerce and industry, an apex representative body of over 66 different trade organisations of the city, has called an emergency meeting on Tuesday to discuss the next course of action against certain ‘anti-trader’ provisions of GST. The meeting would be held at Press Club from 4 pm. President of the chamber, Ramesh Khandelwal informed that the chamber has called for a bandh on Thursday in the city against some harsh provisions of GST. He said that state government had assured the traders to discuss the issues with Union finance minister Arun Jaitley and accordingly, state finance minister Jayant Malaiya met Jaitley on Saturday. Against the backdrop of this meeting, the traders have called an emergency meeting to discuss the development achieved on ground and further plan of action.”