Madurai traders welcome GST reforms
The proposal seeks to abolish 12 per cent GST and cut out 99 per cent of the products on the 5 per cent GST list.
Representative Image
MADURAI: Many traders and business chambers have hailed the long-awaited GST reform to reduce tax slabs.
The proposal seeks to abolish 12 per cent GST and cut out 99 per cent of the products on the 5 per cent GST list. It also seeks to remove the 28 per cent tax rate, acceding to the demand of the industries raised since the inception of GST.
The slash in GST, decreasing the price of many commodities, including essentials like food, medicines and daily use goods, might be a big boost for the commoner.
"The proposed correction in the inverted duty structure, to align input and output tax rates to reduce the accumulation of input tax credit, would go a long way to prevent financial crunch and boost domestic value addition, thereby ensuring ease of doing business. Therefore, the trade and industry would flourish and the tax revenue, both direct and indirect, would go up," S Rethinavelu, president, Agri and All Trade Chamber, Madurai, said on Saturday.
He added that the GST council should ensure that even after reforms, there should not be confusion as to whether a product would attract 5 per cent tax or 18 per cent tax.
He added that it is disappointing that petroleum products are not included in GST bracket.
