Business Other News 02 Sep 2016 FTAPCCI picks 63 pai ...

FTAPCCI picks 63 pain points in model GST law

Published Sep 2, 2016, 2:02 am IST
Updated Sep 2, 2016, 2:03 am IST
The government should give waive off penalties for one year. (Representational image)
 The government should give waive off penalties for one year. (Representational image)

Hyderabad: With the new GST law bring in new system of indirect taxation, Federation of Telangana and Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI) on Thursday asked the government to take lenient view on penalties for at least one year for ensuring smooth transition to the new law. “GST is entirely online based. And there are many traders who are not very well versed with online procedures. However, the GST law imposes harsh penalties for errors. So the government should give waive off penalties for one year,” said Ravindra Modi, the president of FTAPCCI.

The trade body representing both Telangana and AP on Thursday released an exhaustive review of the model GST law and suggested 69 changes to make the proposed law industry-friendly. According to the industry body, there are many anomalies in the proposed law such. For example, food processing companies will have to bear the brunt as they would have to pay tax on overall product as farmers are exempted from paying tax. Similarly, fertiliser companies will have to pay tax on subsidy.

The GST law also provides for cancellation of registration with retrospective effect if such registration is obtained by means of fraud, willful misrepresentation or suppression of facts. However, in such event, FTAPCCI said the recipient of such supplies, who obtained the supplies bonafide, should not be denied the credit on account of such fault of provider of supplies.

Aggregators and the suppliers/service providers transacting through ‘e-Commerce operators’ have not been provided the basic exemption limit up to a certain turnover for being a small service provider. So all e-commerce suppliers will have to get themselves registered.



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