Jamshedpur, July 1: Traders have evoked mixed feelings with the introduction of Goods and Services Tax (GST) in city and the Kolhan region.
Singhbhum Chamber of Commerce and Industry (SCCI) president Suresh Sonthaliawelcomed the initiative and said that he was confident about a new transition to the GST regime.
ďWe have welcomed the introduction of GST. The traders will make sure that the recommendations are properly implemented. We had invited experts from across state and conducted nearly 20 workshops on GST regime. I do not think there will be much problem,Ē said Sonthalia. Incidentally, SCCI represents over 15,000 traders across Kolhan.
Another SCCI official though admitted of initial jerks being felt by the traders. He went on to add that one of the main objectives of GST is to eliminate the cascading impact of taxes on production and distribution cost of goods and services.
The exclusion of cascading effects tax on tax will significantly improve the competitiveness of original goods and services which leads to beneficial impact to the GDP growth.
It is felt that the GST would serve a superior reason to achieve the objective of streamlining indirect tax regime in India which can remove cascading effects in supply chain till the level of final consumers only when all such above mentioned indirect taxes are completely included in GST.
Jugsalai resident Kamal Jain, president of Jamshedpur Wholesale Cloth Merchants Association said that they are small traders and oppose imposition of 5 per cent GST on an item which had been tax free so far. We have to fill in numerous returns (over 36) in an complicated process almost every day and this will affect our business.
Incidentally, 3,500 wholesale cloth traders across Kolhan (twin districts of West and East Singhbhum and Seraikela-Kharswan) had kept their units shuts for the day to protest against the GST imposition.
The wholesale traders said that with the introduction of GST and the complicated tax return process their business will suffer to the tune of over 25 per cent.
Another businessman said that taxes on foods and services would be a significant in the field of indirect tax reforms in the country.
By amalgamating a large number of central and state taxes into a single tax and allowing set-off of prio-stage taxes, it would mitigate the ill effects of cascading and pave the way for a common national market.
He went on to add that it would open up enormous opportunities to entrepreneurs to start new business activities anywhere in the country at the location of their choice.