Indore: Traders' groups demand rationalisation of ITC regime

Indore (Madhya Pradesh): The pain of the traders over the GST regime has surfaced once again. They have stated that the Input Tax Credit (ITC) arrangement is the core of the new indirect tax regime, but it's giving them pain, and have demanded its rationalisation.

Hundreds of traders under the banner of Ahilya Chamber of Commerce and Industry presented this demand in a memorandum addressed to Union finance minister Nirmala Sitaraman, which they submitted to the
commissioner of State GST Lokesh Jatav.

Ramesh Khandelwal and Sushil Surekha, president and general secretary of the Chamber informed that it needs to be acknowledged that implementation of GST was a quantum jump in tax reforms in the country
and many large industries have greatly benefitted from the same. At the same time it must be admitted that it was implemented in a great hurry.
The chamber has said to the minister that seamless credit of ITC is the soul and essence of GST. Unfortunately, due to the misuse of ITC by a minuscule number of unscrupulous elements, roadblocks after roadblocks have been put in availing of ITC. The purpose, obviously, is to prevent the wrong availing of ITC. But, while unscrupulous elements keep on inventing newer modes, it is the honest taxpayer who is suffering from these hindrances.

The traders have requested that only four criteria as originally prescribed in Section 16 (4) should be necessary for taxpayers to avail credit of input tax and all other hindrances should be removed. Also, there should be a practical approach while deciding on late fees, interest and penalties, taking into consideration the ground realities.