Union minister Gehlot visits city under Centre’s effort to address GST related grievances of traders
Indore : Association of Industries of Madhya Pradesh (AIMP) submitted a memorandum to Union minister Thawar Chand Gehlot here at commissionerate office of Central Goods and Service Tax (CGST) in Mangik Bagh on Saturday and demanded amendments in the newly rolled out indirect tax regime.
President of the association, OP Dhoot handed over the memo to the minister, demanding the tax exemption limit for micro, small and medium enterprises (MSMEs) under GST to be set at Rs 2 crore annual turnover against the previous excise threshold of Rs 1.5 crore, which is now reduced to Rs 20 lakh under GST. Small manufacturers with threshold more than Rs 20 lakh will have to register under GST.
The Union minister was on a visit to city under the central government strategy to send ministers in major cities of the country to address GST related problems of the traders and industrialists of that city.
The excise threshold of Rs 20 lakh under GST is too small for a unit and even the previous tax regime too set it at Rs 1.5 crore. Thousands of industries will be forced to shut if this Rs 20 lakh turnover limit remains. About 35 per cent of units operating in the state are MSMEs and are facing a tough time after the launch of GST – OP Dhoot, President, AIMP
Known industrialist of the city, Dhoot briefed the minister about the problems of slashing the limit to meagre Rs 20 lakh, saying the amount was too small for a unit and even the previous tax regime too set it at Rs 1.5 crore.
“Thousands of industries will be forced to shut if Rs 20 lakh annual turnover remains the exemption limit under GST for MSMEs. About 35 per cent of units operating in the state are MSMEs and are facing a tough time after the recent launch of GST,” Dhoot highlighted to the minister.
Dhoot also conveyed that the provision of filing three returns in a month must be revised to submitting one in a month and limit of reverse charge should be set to Rs 50,000 from Rs 5,000 in a month under the new tax regime.
The delegation that met the Union minister and handed over the charter of their demands, consisted over 50 representatives of 30 trade and industry organisations.
However, Gehlot promised the manufacturers and industrialists to convey their problems as it is to Union finance minister and also urge him to consider the amendments in favour of MSMEs.
Later, officials of the CGST department made a presentation on the implementation and implications of the new tax regime before Union minister Thawar Chand Gehlot, department officials and other members of various trade and industry bodies at the commissionerate office of CGST in Manik Bagh in city.