Cuttack, June 30: Trader's organisations here today expressed concern over the "complexity" of the Goods and Services Tax (GST) which they sense will have a significant impact on traders and shopkeepers after coming into force from midnight.
"The utter complexity of the procedures is likely to make GST a nightmare for thousands of small traders as they have no infrastructure to be GST compliant," said Prahallad Khandelwal, president of the Cuttack Mahanagar Byabasayee Mahasangh.
With more than 1,000 members, the Mahasangha is the umbrella organisation for traders of around 25 trades in the city.
"There are about 7,000 traders and shopkeepers and not more than 15 per cent are computer literate. So, at least 5,950 traders are not computer enabled. But GST can be complied with only via computers which connects with the GSTN network on which all business, traders, shopkeepers will be registered," Khandelwal said.
The traders are worried as they feel that an even bigger "nightmare" awaits them in the form of new procedures for filing of returns.
So far, traders were expected to file monthly returns with one annual return.
"But traders with an annual turnover of Rs 10 lakh will have to file three monthly returns along with one annual return, making it a total of 37 returns under the GST regime. This will result in heavy compliance costs," said vice-president of the Mahasangh, Prasanta Kumar Panigrahi.
"We expect revision in the rules for filing returns - quarterly returns and one annual return - to makes things easier for traders," Panigrahi said.
The Mahasangha had so far not joined the call given by the Bharatiya Udyog Vyapar Mandal for nationwide bandh to protest against some of the provisions of GST, but expressed solidarity with the protesters.
"We are not against implementation of GST. But we are worried about the rules as they lack clarity. Besides we urge that there should not be more than 15 per cent tax on any item. We are also against the levying of taxes on food grains and garments," said Kamal Agarwal, member of the Mahasangh's advisor committee.
The GST on various commodities ranges from 5 per cent to 28 per cent.
The Cuttack Chamber of Commerce (CCC), the umbrella organisation of traders at Malgodown, the largest wholesale mandi for essential commodities in the state, also expressed concern as they had little clue about how to go about billing while conducting their businesses under the new GST regime.
"Although only a few hours are left for rolling out of GST, we have no idea about formats of new invoices to be used under the new tax regime. Without specified invoices how will we generate bills and continue with our business?" asked B.K. Mohanty, general secretary of the CCC.
"We are not opposed to GST as a concept. But it is a matter of concern for us is that it is becoming increasingly clear that neither the Union government nor the state government are adequately prepared as the new tax regime starts from midnight tonight," Mohanty said.
There are at present 1,500 merchants including wholesalers and sub-wholesalers who are carrying out trade in Malgodown.
The GST is a new form of indirect tax that will be imposed, abolishing 17 state and central levies. Labelled as the biggest tax reform in independent India, GST will be applicable to both goods and services.
