CAIT hails decision deferring GST hike on textiles
   Date :02-Jan-2022

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Business Bureau :
 
THE Confederation of All India Traders (CAIT) has hailed the decision to withdraw 12 per cent GST on textiles from January 1, 2022 and it has termed this step of the GST Council as pragmatic, justified, logical and much awaited. CAIT National President B C Bhartia and Secretary General Praveen Khandelwal jointly welcomed the decision on behalf of the traders across the country. They both said that it would bring relief to lakhs of textile traders of the country who were under immense stress for more than a month.
 
They also also said that like textiles, it is also necessary to postpone the decision to increase the GST rate on footwear as well. Bhartia and Khandelwal lointly said that this decision of the GST Council shows how the politicians of the country have become puppets in the hands of the bureaucracy and do not even consider its merits and demerits before taking any decision what to say of having consultations with the traders and the stakeholders. Bhartia and Khandelwal both have urged the Union Finance Minister Nirmala Sitharman to constitute, a “task force” to consider the intricacies of the taxation system, simplification and rationalisation, increase in tax base and revenue to the Government. The said task force may be formed under the chairmanship of the Chairman of the Central Board of Indirect Taxes, which should include representatives of trade beside senior officials.
 
CAIT took up this issue vigorously for the last one month in the whole country and where it met Union Finance Minister Nirmala Sitharman and Union Commerce and Textile Minister Piyush Goyal, expressing strong opposition to the traders and demanded its withdrawal. CAIT Chapters of the States met their State Finance Minister and other senior Government officials and gave memorandums and demanded to take back this increase. Bhartia and Khandelwal both the trade leaders said that it has been more than four years since the implementation of GST and till now GST has not become a stable tax system. GST portal is also not working properly. Contrary to expectations, GST has turned out to be a very complex tax system due to huge anomalies in the tax system. CAIT had earlier demanded the Central Government and the GST Council to rethink the entire GST tax system and make it a very simple tax system which encourages more and more traders across the country to register under GST. “It will yield more revenue to the Government and will increase the tax base,” CAIT said.