GST council to make changes in 5, 12 and 18 per cent slabs
Move might push up the prices of various commodities
Aurangabad, Dec 3:
As per the recommendations of the officer-level fitment committee, the GST council is considering to change the GST tax slabs. The slabs could be hiked from 5 per cent to 7 per cent and from 18 per cent to 20 per cent. The traders have opposed the change in tax slabs stating that this might severely affect the prices of daily commodities, harming the business.
The GST council will consider removing the first and second slabs in the GST. The 5 per cent slab will be increased to 7 per cent and the 12 and 18 per cent slab will be merged to form a new slab of 17 or 20 per cent. However, various trader associations have opposed the move. President of the Jilha Vyapari Mahasangh Vijay Jaiswal said that the inflationary impact of any such major hikes, especially in the aftermath of covid might destroy the trading community and get businesses in trouble. Nearly 60 to 70 per cent of traders in Aurangabad district are involved in textile and footwear industry. With these new changes in place, the price of goods will go beyond the reach of the poor and middle class and the burden of the increased tax will fall on the customers. The business was already stagnant for the past one year, and now is slowly returning to normalcy. Another setback, might throw many out of business.
Prices of readymade garments, footwear to skyrocket
The new tax regime may come into force from January 1, 2022. The traders said that the price of everything right from school uniforms to branded clothes and footwear will go up. At present, the apparels below Rs 1000 attract 5 per cent and above Rs 1,000 attract 12 per cent GST. People get annoyed when they see the GST rates in the bill. Now with the slabs set to change, the customers might think twice before making any purchase, impacting the business.
Oppose the recommendations
The business community has opposed the changes in GST and has called for a statewide agitation. Trade is coming to an end and the only thing left for traders to do is to collect taxes for the government. Traders have suffered financially during the corona period. The mahasangh will soon issue a statement asking the government to reconsider the changes in GST.