Allow payment of GST by buyer directly to Government similar to RCM: FAIVM said in its representation

Distressed by the complexities and oddities of GST, traders have made a unique effort. Submission of collective representation in series , has been initiated by the Federation of All India Vyapar Mandal (FAIVM), the nation’s apex trade organization. By this collective representation submitted to Hon’ble Prime Minister through concerned District Magistrate  , it has been requested to simplify the GST. On 22 February last, the Hon’ble Prime Minister was urged by about 200 odd District Unit of FAIVM and associated organizations to enact a new GST law. In continuation of monthly series ,  a reminder memorandum is being sent to Hon’ble Prime Minister and Hon’ble Chief Minister of the State on 23 March 2021. This time, more than 400 district units of FAIVM are participating in this campaign and are making the same demand that the traders should be protected from GST inequities and Government should enact a new GST law.

Mr.V K Bansal, National General Secretary  of Federation of All India Vyapar Mandal , told the media that through the memorandum, the Prime Minister has been conveyed that India’s traditional small retailer is a backbone in India’s economy. . He not only reduces the burden of government to provide jobs to him rather he creates job for him as well as provides employment to 44 crore youth of the nation. It was also conveyed to Hon’ble Prime Minister

It was also conveyed to Hon’ble Prime Minister  that only 20% of the collection in GST revenue collection comes from the traders and retailers while 80% of the collection comes from the industry and services sector. In such a situation, if the provisions of GST for small traders are simplified and made easy, then every trader of the nation will put his full strength in increasing trade and ensure his participation in the economy of the nation more.

According to the Mr.Jayendra Tanna, National President, through the reminder request letter, the Honorable Prime Minister has been urged from time to time the government reviews the old laws and amends the laws based on the demand of the time and prior experience. Therefore, through this reminder request letter, the small traders and retailers community of India urges you that a new GST Law should be framed to ensure protection of Traders from financial and mental harassment.. If the following suggestions regarding the new GST law are implemented, the small traders and retailers will feel a great ease and simplicity and will be motivated voluntarily to comply with the tax.

Representation submitted by FAIVM mainly comprises to increase threshold limit to 75 lakhs for both trade,industry and service. Only three slabs of GST should be introduces which will make use of HSN code irrelvant. This would be a big relief for small traders.

FAIVM also demanded that there should be some mechanism similar to RCM, wherein buyers of goods, pays GST himself to Government, on the purchases made by him. Rest of amount of the invoice will be remitted to Seller. Thus will end an era of non availment of ITC in case of default by sellers in depositing GST with Government.

FAIVM also demanded that unintentional and petty mistakes or omissions should be made rectifiable  and only GST should be charged, paid and claim in ITC instead of present system of keep account for IGST, CGST and SGCT separately. Mr. V K Bansal claim that software at GTSN based on registration number of buyer and seller can do revenue sharing. By this GST will be truly one nation one tax.

FAIVM also sought soft penalties, instead of high rate of penalties, on delay in filing of GSTR, or some other technical mistake

Acknowledged copy of representation submitted to PMO and FMO can be seen at following links

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April 2021