GST takes big bite out of business across Delhi : Jagmohan Garg

With no customers to tend to, traders spend Monday decoding new tax system notify by Jagmohan Garg News.

Impacts-of-GST-Bill-on-Real-Estate-Jagmohan Garg

Traders across Delhi complained of little business coming their way on Monday, the first working day since the Goods and Services Tax (GST) system was rolled out on July 1, even as they spent the entire day trying to understand the “complex” new tax regime.

“Wheat in loose form is being sold without tax. However, if it is packed in bags by a certain company then it is taxable under GST,” a shopkeeper states while trying to understand GST.

Old stock

 

The entire chain of national commerce, which has Delhi’s wholesale markets at its centre, has gone kaput with purchasers and customers deciding to halt business for sometime, said Brijesh Goyal, the national convener of the Chamber of Trade and Industry (CTI).

“Delhi is the hub of wholesale markets, which have dried up due to lack of demand and supply. Everyone is trying to understand what to do with the stock they bought before the GST came into effect,” Mr. Goyal said.

Shop owners said they spent their entire Monday taking inventory of old stock and figuring out the changes made to billing procedures.

Some traders got experts to tutor them on the new aspects of selling goods that were purchased prior to the GST coming into effect so they could avoid any “hidden irregularities” that may become a legal liability.

“There are instances where customers want to buy a product that was provisioned by the trader before GST was in place. In such a case, a trader can’t refuse to sell the product, can they?” said Sanjay Bhargava, the general secretary of Chandni Chowk Sarv Vyapar Mandal.

New way of doing things

 

The traders also have to register for a Goods and Services Taxpayer Identification Number (GSTIN), before they can conduct inter-State purchases from cities such as Surat, Ahmedabad and Mumbai, or sell products across the country. Their customers too have to get a GSTIN.

Chartered accountants said this was a major reason why business was slack.

Chandni Chowk, which is renowned for wholesale clothing, has been hit by GST as most businessmen here were not liable to pay sales tax or VAT till now, but have to pay 5% under GST.

Raj Kumar, who sells blankets and bed sheets in the market, said: “We have faced a drop in sales because of GST. Many cloth merchants are not happy with the government’s decision.”

‘Very complicated’

 

Traders in east Delhi’s Subash Chowk are not worried about the increase in taxes but are apprehensive about the complexity of the new tax regime, which they find difficult to comprehend and implement.

“We do not have any issue with GST, we have an issue with how complicated it is,” said a wholesaler of spices, dal and groceries.

Under GST, traders will have to file their monthly returns online, but a majority of the businessmen do not have computers or know the process of online billing.

“Some shop-owners cannot even spell the word computer and are not very tech-savvy,” a mobile and laptop dealer said.

A local seller of school uniforms said it will take them around 15 days to comprehend the new tax regime.

Jagmohan Garg News source: http://www.thehindu.com/news/cities/Delhi/gst-takes-big-bite-out-of-business/article19208588.ece

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Jagmohan Garg News Jaitley at BRICS: GST rate on polluting items may be higher

Finance Minister Arun Jaitley. (Photo: PTI)

Within days of India signing the Paris Climate Treaty, Finance Minister today said tax on environment unfriendly products will be “distinct” from others in the forthcoming regime so as to boost funds for climate financing.

“The indirect tax regime that we are planning, the rate of taxation on such products which are going to be environmentally unfriendly would be distinct from the normal rate of taxation. This is one of the proposals being discussed,” Jaitley said ahead of the two-day beginning here tomorrow.

The government is in the process of finalising rates for the Goods and Services Tax.

The country has taxed coal and petroleum products in the past as well, Jaitley said, adding that “resources have to be mobilised from all sources for climate financing so that sustainable development goals can be achieved in a much more concrete manner”.

He said large commitment from the developed countries to provide funding for climate change financing is not sufficient to meet the sustainable development goals and that the multilateral agencies also need to chip in.

“Even now there is a debate as to nature of the USD 100 billion (that the developed world has committed for the developing nations), to fund technology transfers we do hope there is no double counting as far as the fund is concerned,” the minister added.

The minister said, last year New Delhi and Beijing raised the issue of USD 100 billion because more than the value of the money, it was also about the trust.

Though a report indicated that most of the money was already paid there are various forms in which money is spent like healthcare, which can help environment, as the money is counted towards healthcare and also environment protection, the minister said.

Speaking on the issue, Reserve Bank Governor Urjit Patel raised concerns about countries undermining objectives like climate finance.

“The USD 100-billion number has been talked about for the past 10 years and there is very little pressure from the domestic constituencies in the advanced economy countries, including the media. This is part of a grand bargain and if you keep on undermining this, I think people will walk away from the table at some point,” Patel said.
Patel also said there is a need for cooperation among the

BRICS nations — Brazil, Russia, India, China, South Africa — to take forward the climate change agenda.

After refusing to join the global climate alliance under the Paris climate deal, the government on October 2 had ratified the treaty.

The move is expected to give momentum to the implementation of measures at the international level to control global warming.

New Delhi’s ratification will further underline its responsive leadership, which is committed to global cause of environment.

The pact will come into force after it has been ratified by at least 55 countries which account for 55 per cent of global greenhouse gas emissions.

So far, 61 countries have deposited their instruments of ratification, acceptance or approval accounting in total for 47.79 per cent of the total global greenhouse gas emissions.

The ratification will take the number of cumulative level of emission of countries that have ratified the agreement so far to 51.89 per cent as its total emissions is 4.1 per cent of the global emissions.

The Paris Agreement was adopted by 185 nations on December 12, 2015, and India signed it in New York on April 22 this year. A total of 191 countries have signed the Paris Agreement so far.

China and the US – responsible for around 40 per cent of the world’s carbon emissions – have already jointly ratified the Paris climate change deal that aims to significantly reduce global emissions, giving hope that the landmark accord may come into effect by the end of this year.

SOURCE: http://www.business-standard.com/article/pti-stories/gst-rate-on-polluting-items-may-be-higher-116101400631_1.html