Coimbatore: A petition has been submitted to the Minister of Commercial Taxes, Registration and Stamp Law, P Murthy on behalf of the COTMA Association, seeking concessions on GST for entrepreneurs.
Coimbatore: A petition has been submitted to the Minister of Commercial Taxes, Registration and Stamp Law, P Murthy on behalf of the COTMA Association, seeking concessions on GST for entrepreneurs.
In a petition submitted to the Minister of Commerce and Registration, Tamil Nadu, P Murthy on behalf of the Katma Association, the COTMA Association members stated, "More than 40,000 factories are operating in Coimbatore and Tirupur districts. COTMA Association has over 5,000 entrepreneurs and members. Due to the large number of entrepreneurs being members and in close contact with entrepreneurs, entrepreneurs' requests for GST are made here as requests. The GST tax levied by the Central Government on the basis of labour charge should be reduced from 12 percent to 5 percent for entrepreneurs engaged in jobs.
Now, as per the GST Council, if the seller of an item does not file his GST account by the 11th of every month, the customer who purchased the item will have to withdraw the GST rule that he or she will not be able to deduct the GST tax (ITC). Since the introduction of GST, 8,20,481 GST accounts have been disabled due to non-filing of GST returns across the country till February 2021. In addition, 7,34,405 people surrendered their GST accounts due to the industrial recession and pressure from the business tax department. As a result, about 16 lakh factories across the country have been closed by GST. Entrepreneurs do not think that they should be deceived by not paying GST."
"However, in practice, there is a delay of 90 to 180 days for a small business (entrepreneurs' bill to be paid by their clients when they pay the bill). Entrepreneurs have to pay GST which in turn incurs interest and loans from private financial institutions, which in turn reduces the investment that entrepreneurs have to make in their business since they have to pay monthly installments plus interest. Entrepreneurs who pay GST late are also more likely to be charged interest and penalties.
Therefore, it will be of great help to the affected entrepreneurs to resume their business if the entrepreneurs who are willing to pay GST tax are allowed to resume their business by paying only their GST arrears without any interest or penalty. This will increase the country's tax revenue and increase domestic production. And jobs will increase. The GST tax rate on raw materials for the production of certain goods is high and the GST tax rate for the sale of manufactured goods is low, which is also a major crisis for entrepreneurs.
An entrepreneur who does not file a GST return or pay GST, if he fails to pay the full amount of GST outstanding with interest within 30 days of the deactivation of his GST account, does not deduct the full tax arrears (ITC) from the tribunal, and pays it in full, including interest and penalty. Only after appealing and getting the verdict can they renew their GST account and continue their business. It takes at least three months to do so. A GST account number that has not filed a GST monthly account is disabled by the authorities. But the same GST account number, which is applicable only if the tax is paid in full and refunded comes into effect leading to delays and creating a crisis for entrepreneurs.
When a micro-entrepreneur receives goods from his client through E-Way bills, transforms it into a JobWork basis and sends it back to the customer, he or she should be allowed to use the e-Way bills received from the customer to return the goods, have a lathe. This will be of great help to entrepreneurs who do not have an understanding of bills. Entrepreneurs should be provided with the facility to rectify the situation immediately after filing their accounts and filing the return online and if there is any mistake in it, the error in the account can only be rectified within a month.
A few years ago, the Certificate of Registration (RC) for starting a business was issued online. However, at present, the RC is issued only after the officers have visited and inspected the premises. Since this leads to delays, the Government of Tamil Nadu and the Registrar of Commerce and Industry, GST, have considered that small businesses can be revived if practical and technical issues affecting businesses in GST such as GST registration are resolved as soon as possible. We humbly request the Council to bring this matter to the attention of businesses and entrepreneurs," stated the COTMA Association members in their petition.