Make tax system flawless: Iron scrap traders
Tribune News Service
Chandigarh, August 4
The Union Government is reportedly contemplating to reduce Goods and Services Tax (GST) on steel scrap to check tax evasion on scrap, however iron scrap traders from Punjab believes it would not be of much help in achieving that goal.
“We get secondary scrap from suppliers across the country. On many occasion, our suppliers disappear overnight after being in the business for a few years. Whenever we get scrap from the suppliers, we pay the amount as per the invoice, including GST. At times, the suppliers do not deposit the GST amount with the department and shut their operations abruptly. In such cases, the department asks us to pay the GST. In that way, we have to pay GST twice. This affects our business. Why should we be held responsible for the fraud committed by suppliers?” said Aman Sharma, president of the Iron Scrap Traders Welfare Association. The association alleged that its repeated representations to the GST authorities in that regards had not produced any positive results so far.
There are around 700-800 iron scrap traders based out of Mandi Gobindgarh in Punjab. They are engaged in retailing scrap, which is sold to steel mills. These dealers trade around 10,000-12,000 tonne steel scrap daily. The secondary steel scrap comes from the unorganised sector. Scrap dealers also claimed that flaws in the central GST portal also created problems for them.
The Iron Scrap Traders Welfare Association, Mandi Gobindgarh, has urged the authorities that e-bill should be generated only when the person selling the goods had paid the GST. If that policy was implemented, GST invasion would be checked to a large extent and the government revenue increase manifold.
Their suggestion
- According to traders, e-bill should be generated only when the person selling the goods has paid the GST
- If that policy is implemented, GST invasion will be checked to a large extent and the government revenue increase manifold
