Four tax rates under GST will contain inflation: CAIT

Four tax rates under GST will contain inflation: CAIT

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The Confederation of All India Traders () said that proposed four tax rates under is probably designed to contain inflation under GST. However, decision on exempted goods, zero rate goods and levy of tax rate on Gold-Silver is yet to be known.

Four tax rates under GST will contain inflation: CAIT
From the point of view of traders it is more important to know the classification of goods under different tax rate under GST as only then final shape will emerge

From the point of view of traders it is more important to know the classification of goods under different tax rate under GST as only then final shape will emerge, the traders body said in a press note.

Read: GST Council okays 5-28 pc four-slab tax rate; luxury, sin, coal to be taxed

However, they have categorically demanded that irrespective of rates, there should be one single return and single authority to control the taxation system because only then the tax net will be widen and revenue will be increased.

“GST is a technology led taxation system with an inbuilt e-compliance fundamental in its design. However, majority of the country’s trading community are yet to adopt computerisation for maintaining books and filing tax. In this light,the Government should immediately began talks with trading community and empower them with requisite knowledge and education to adopt to the GST structure seamlessly,” National President, B.C.Bhartia and Secretary General, Praveen Khandelwal, CAIT said in a press note.

Read: Cess on demerit goods goes against promise made for GST

They further said that GST taxation system is entirely different from current taxation system. It will lead to the merger of excise, service tax, VAT and other taxes under GST, coupled with its e-compliance in totality, therefore it is all the more necessary to equip the traders and other verticals of non-corporate sector with adequate knowledge about the procedures and compliance formalities under GST.