GST New Rule: Businessmen have started raising voice against the government’s new rule regarding GST, they say that it will make it difficult for small businesses to do business, on which the Finance Ministry has issued a clarification.
New Delhi: The Finance Ministry has issued a clarification on this after a dispute about the rule of making 1% GST payment in cash. The Finance Ministry has said that less than one percent taxpayers will come under the purview of this new rule, which will have an impact on it. It will not affect small businessmen.
In fact, under this rule of GST, every trader whose turnover is more than Rs 50 lakhs a month will have to deposit a percent GST liability in cash. Its purpose is to prevent tax evasion through fake bills. The Finance Ministry had in a notification on 22 December informed about adding Rule 86B to the GST rules.
Tax department officials say that there is no truth in the argument that this rule will affect small businessmen and increase their working capital requirements. There is no basis for misunderstanding about this rule in the minds of people.
A senior finance ministry official said that the rule is clear that where revenue is more risky, this rule will apply there. Only 45,000 taxpayers will be affected by this rule. Which is just 0.37 percent of the 1.2 crore tax base. He said that this rule will not affect the honest dealers and traders.
Tax officials said that ‘1 percent cash payment will be calculated on one month’s tax liability and not on one month’s turnover. For example, if the monthly turnover of a taxpayer is Rs 100, then he will have to pay 12% tax. In this, he will have to pay only one percent i.e. 0.12 paise cash. Here’s the verdict on Google vs the men fighting for his ‘right to be forgotten’ on the web
The Confederation of All India Traders (CAIT), an organization of traders, has sought to stop Rule 86B in the GST. CAIT had also written a letter in this regard to Finance Minister Nirmala Sitharaman on Friday, demanding immediate adjournment of this rule. CAIT general secretary Pravin Khandelwal has said in a letter to Sitharaman that now is the time when the government should sit down with businessmen and review the GST tax system and make it easy.
