A delegation of Chamber of Associations of Maharashtra Industry & Trade (CAMIT) led by its President Dr Dipen Agrawal and Chairman Mohan Gurnani along with Bombay Metal Exchange (BME) and Metals Recycling Association of India (MRAI) met Dr Bhagwat Karad, MoS Finance, GOI at Mumbai today.

The delegation submitted a memorandum highlighting the hardship faced by business community due to Section 16(2) of Central Goods & Service Tax Act (CGST Act). Dr Karad was also requested to frame recycling policy for non-ferrous metal, to attain the aims of the circular economy.

Dr Agrawal said that, CAMIT appreciates the sensitivity shown by Government in addressing the concerns of business community raised time to time regarding implementing Goods & Service Tax. Highlighting the adverse effects of Section 16(2)(c) of CGST Act, 2017 Dr Agrawal said that, it is one of the harshest and scariest provisions of the GST laws and it is nightmare for the honest taxpayers.

Mohan Gurnani said that, Government should ask bureaucrats 1) whether there any mechanism or module in the hands of purchaser to know whether the seller has paid the tax or his ITC is admissible, 2) whether purchaser is bestowed with any legal authority to ensure this compliance by the seller, 3) whether purchaser can sue the seller for not paying the tax and get immediate justice, 4) whether purchaser is placed in a superior economic position vis-a-vis the seller as far as dictating terms are concerned, 5) whether purchaser take the role of an enforcement agency, 6) whether purchaser can withhold the payment of tax.