Traders’ body Confederation of All India Traders (CAIT) has urged Finance Minister Nirmala Sitharaman to defer the implementation of ‘Rule 86-B’ in GST, scheduled to be implemented from January 1, 2021.
In a letter to the Finance Minister on Friday, the traders’ body said that the recent notification of the Goods and Services Tax (GST) incorporating ‘Section 86-B’ which levies a mandatory payment of 1 percent tax to be deposited, where the monthly turnover is more than Rs 50 lakh is a counterproductive step.
Accordingly, the move will burden traders with compliance and more financial obligation.
Besides, the traders’ body also urged Sitharaman to extend the last date for filing GST and ‘Income Tax Audit’ returns from December 31 to March 31, 2021.
CAIT Secretary General Praveen Khandelwal said that any amendment in any tax law should be implemented from the beginning of the fiscal year instead of “amending again and again during the in-between period of the year”.
The traders’ body has also warned of strict action against alleged tax evaders but said that “everyone should not be subject to harsh provisions” as it is against the principle of natural justice.