Traders Claim GST Exemptions Favor Large Corporates and Cause Implementation Issues

Traders Claim GST Exemptions Favor Large Corporates and Cause Implementation Issues

• Allegation of Corporate Favoritism

  Traders, through their representative bodies like the Kerala Vyapari Vyavasayi Ekopana Samithi and the Confederation of All India Traders (CAIT), have expressed concern that the recent GST exemption announcements are a central government policy “favouring large corporates for profit hunting.” They allege that within ten days of the changes, several large corporations reportedly increased their product prices, pointing to a need to curb price increases at the production level.

• Confusion Over New Rate Structure

  Traders are facing significant difficulties due to the lack of clarity regarding which specific products qualify for the reduced GST rate (from 18% to 5%). They note that the full list of reduced-rate goods is unclear, and products manufactured as combinations often still attract the higher tax rate, leading to potential disputes and the risk of traders incurring significant costs for any errors.

• Challenges in Implementation

  Trading establishments, especially large ones like supermarkets, are struggling with the practical aspects of implementation. Since they rely on purchase bills from companies to confirm tax exemptions, and utilize inventory software, the inability to get timely software updates for categorizing the thousands of affected items is causing considerable concern. They argue the government failed to provide adequate time for such a significant structural change.

Source :- Times Of India