Protests, celebrations mark welcoming GST

Tirupati: As the final countdown starts for the historic Goods and Services Tax (GST) regime, protests and celebrations were leading the country towards the biggest economic reform since independence.

After many years of intense parleys and amendments, one nation one tax is becoming a reality. Though some sections of the business community as well as political forces were opposing the GST for various reasons, the people go to bed on Friday night to wake up at dawn on Saturday to see a new taxation system that has many complexities at least for now.

The GST is one indirect tax for the whole nation which will make India one unified common market. It is a single tax on the supply of goods and services right from the manufacturer to the consumer.

There was much hue and cry from some quarters on the tax rates under GST. Especially, hoteliers, cloth merchants, Shoe mart owners, granite merchants etc., were opposing the high rates of taxes imposed on their businesses. Hoteliers have organised a day bandh in South India to protest against the classification of imposing tax as Air-Conditioned (AC) and non-AC restaurants.

Cloth merchants observed a 3-day bandh. They say that since independence no government has levied any tax on cloth and now also they should get that exemption and the tax rate on readymade clothes be reduced. On Friday, the cloth merchants organised a procession and submitted a memorandum to Tirupati Sub-Collector on their demands.

Cloth Merchants association president Pasuparthy Gopinath, Secretary V Venugopal Naidu and Chamber of Commerce Association president A Manjunath among others participated.Another opinion that was heard from the business community was that most of the traders were uneducated and it would become a herculean task to understand the cumbersome rules and regulations.

The treasurer of Tirupati Chamber of Commerce and the President of Tirupati Hoteliers Association KV Choudary said that no one is opposing GST but their main objection was about the high tax rates which would be a burden on the consumer ultimately. If the tax rates are reasonable and rules and regulations are simplified they are ready to welcome it.

He cited some examples that plastic chairs which are used by even common people are taxed at 28 per cent slab as against the present five per cent. Similarly, granite would attract a tax of 28 per cent as against 14.5 per cent. In such a case, industry will be affected which may see the employees lose their employment.

However, the Commissioner of Central Tax GST Commissionerate, K Engineer said that the beauty of this tax regime was that it involves a dialogue at every stage and all problems were addressed. There was a consultative approach. Besides, the central government has appointed Suvidha providers, who will help the business fraternity mostly from the unorganised sector in understanding the rules and regulations.

No penal action would be taken on anyone for any mistake for the initial two months and in fact the department will correct them, he clarified. As far as the migration to GST portal, the Central GST department has completed the migration of 80 per cent out of 909 central excise assesses and around 65 per cent in case of service tax assesses among the four districts of Rayalaseema that come under Tirupati Commissionerate.

The state Tax department has completed 95 per cent enrolments while 74 per cent have completed the process of migration in Chittoor district.

Both the offices of state Tax and central Tax departments in Tirupati wore a festive look on Friday with employees were seen congratulating each other on the eve of GST regime and planning to celebrate the event with special dinners, cutting of cakes etc. The office buildings were tastefully decorated and illuminated to mark the occasion.

By V Pradeep Kumar