New Delhi: The Federation of Trade Confederation of All India Traders (CAT) has opposed the addition of section 86-B to the GST rules. Under Section 86-B, traders whose monthly turnover is more than Rs 50 lakh will have to deposit 1 percent GST cash. The government has taken this measure to prevent tax evasion through fake bills. But the traders objected to this and demanded to withdraw it.
CAT has sent a letter to Union Finance Minister Nirmala Sitharaman demanding that the rule be immediately adjourned and implemented only after consulting the traders. CAT has also demanded that the last date for filing GST and income tax returns should be extended for three months on December 31, 2020. In a letter sent by CAT National President BC Bhartia and National General Secretary Praveen Khandelwal have said that the time has come for the government to sit down with the traders and review the GST tax system.
He said that Rule 86B would adversely affect the business of traders across the country. Traders are already plagued by Corona and now this new rule will become an additional burden on traders. For the past one year, the payment cycle of traders has deteriorated badly. Payment of goods sold by traders for a long time and the amount of GST is not coming for months. In such a situation, the rule of depositing GST cash of 1 percent will put additional economic burden on the traders which is not fair.
