Beopar Mandal urges govt to watch interests of MSME sector

The Punjab Pradesh Beopar Mandal (PPBM) has urged the government to watch the financial interests of dealers and manufacturers in the MSME sector after the reduction in GST rates.

PPBM president Piara Lal Seth stated that the recent changes in GST rates by the Central government are certainly steps to boost consumption and production, but their implementation has serious flaws.

He stated that these changes will impact the pharmaceutical industry, corrugated box industry, stationery industry (such as pencils, sharpeners and erasers – which are placed in the zero tax slab), and steel utensils industry.

These sectors often have to purchase raw materials at 18 per cent tax, while finished products are taxed at only 5 per cent or zero. The disparity will cause traders and industries to face significant difficulties in adjusting input tax credits and lead to double blockages in the payment system.

For example, a trader may purchase raw materials at 18 per cent tax, but may only collect 5 per cent or zero GST when selling finished goods. This would require a series of departmental visits to recoup the difference. The process wastes both time and money and proves to be an unnecessary burden for traders.

Seth said it is not appropriate to include the shawl industry in the “made-up category” because there is no cutting involved. All shawls, regardless of their price, should be placed in the 5 per cent GST slab. He said that shawls are a traditional and employment-generating industry in Punjab and northern India. The complexity of different tax slabs is proving burdensome for traders.

Similar problems have been created in some services sectors. A five per cent GST has been imposed on the service industry, but input tax credit has been eliminated. The move contradicts the spirit of GST and appears to be a return to the VAT era.

Jain said the government should make decisions keeping in mind the practical aspects of businesses and industries. The tax structure should not create such discrepancies that lead to complications and creation of additional burden for businesses. He added that if these discrepancies are not addressed, small businesses and industries will be the most affected.

Finally, he urged the government to immediately eliminate this imbalance in GST rates and make the tax structure simple and practical so that all three – trade, industry and consumers – can benefit.

Pathankot ex-Mayor, BJP leader hail cut in GST

Senior BJP leaders have highlighted the benefits of the restructured GST and said the new reforms were not only a Diwali bonanza to the people but would also provide long-term benefits. Addressing a press conference, former Pathankot Mayor Anil Vasudeva and Gurdaspur BJP president Baghel Singh stated that these reforms not only simplified the taxation process but also paved the way for inclusive growth, ensuring that farmers, traders, women and small businesses will benefit equally.

Vasudeva, who is also an ex-Chairman of the Pathankot Improvement Trust, said GST-2.0 will boost demand and generate employment opportunities for lakhs of youngsters. “We assure you that the government will properly monitor that the industry passes on the full benefit of the rate cuts to consumers,” he said.

He elaborately explained the transformative benefits of the reforms, emphasising how they are designed to provide relief to citizens, boost economic activity and simplify compliance.

“The GST rates have been significantly slashed, with cuts in 99 per cent of goods in the 12 per cent bracket and 90 per cent in the 28 per cent bracket, thereby bringing major relief to households and the middle class and a boost to consumption with lower tax rates. Domestic consumption is expected to rise by nearly Rs 2 lakh crore, thereby strengthening India’s economy,” added Vasudeva.