Traders unhappy with new GST rule

Tribune News Service

Amritsar, November 17

GST registered dealers are irked at the Union Government for its new provision as per which 80 per cent of the input credit of the buyer will be withheld in case the seller of his products does not upload the bill on portal.

A trader, Samir Jain, said his input credit got stuck as the computer hardware company with which his firm has annual maintainance contract (AMC) did not file its return. “It is akin to being victimised for the crime of others,” he said.

As per the Centre’s notification number 49/2019, issued on October 9, 2019, the buyer will get only 20 per cent of the input credit if the seller has not uploaded the bill on portal. This has caused consternation among GST dealers as they fear that their capital will remain stuck for long duration. It will create further liquidity shortage in the market.

A businessman, Kamal Mehra, said the rule further complicated the GST return for both traders and the government. Officials will have onerous task to streamline as traders file monthly and quarterly returns, depending upon their annual turnover.

Those dealers who have turnover less then Rs 1.5 crore file returns quarterly and those above Rs 1.5 crore file returns monthly. In this scenario, there will be a two-month gap to cross check the returns.

Piara Lal Seth, president, Punjab Pradesh Beopar Mandal, said his shawl manufacturing unit was likely to receive 20 per cent input credit for the next return as the courier company with which it dealt didn’t file return for the past eight months.

He said the new notification further complicated the GST which already had recorded over 1,000 amendments. He said bureaucrats were seeking out new ways to increase the falling revenue of the GST. He added that the monthly GST revenue was between Rs 80,000 to Rs 90,000 crore against the target revenue of Rs 1.5 lakh crore.