The Confederation of All India Traders (CAIT) has complained against the Maharashtra Government’s circular to Prime Minister Narendra Modi.
According to traders’ body, the circular is aimed to distort unified Goods and Services Tax (GST) Taxation System and is a violation of federal spirit of GST.
”It will also pave the way for other states to interpret each circular of the Central Board of Indirect Taxes and Customs (CBIC) in their own way which will be much prejudicial to the GST tax system,” CAIT said.
CAIT National President B C Bhartia and Secretary General Praveen Khandelwal in communication to PM Modi said that a circular Maharashtra Government issued on January 12, 2021 stated that till date they were adopting CBIC circular for implementation of GST, however, now onwards they do not adopt such circulars. They will examine the clarification by CBIC, and after examination of the same they will issue their own circular.
While expressing serious concern, the duo said that this step of the Maharashtra Government is a serious issue which is much against the basic fundamentals set out and agreed between Centre and States prior to implementation of GST.
”If states behave like this then each state will adopt separate policies for GST implementation in their states and the traders will have to be updated for all the states every moment which is an uphill task and will make the already complicated GST tax system further much more complicated resulting into either untimely compliance or no compliance,” they added.