The countdown to the Goods and Services Tax (GST) rollout from July 1 has begun and the biggest challenge for the state and Central government is to bring the traders under the GST umbrella.
Traders with annual earnings of more than Rs 20 lakh have to be GST-compliant. The lack of adequate information on the GST and challenges with computer literacy have left traders worried.
There are nearly 6 crore small traders across the country. In Delhi alone, several small and big traders do not have sufficient information on what exactly is GST.
Several traders feel that before the GST rollout, the government must start drives to inform and educate traders about GST and its impact. Traders believe that such drives will help them become GST-compliant.
According to the secretary-general of Confederation of All India Traders (CAIT) Praveen Khandelwal, it is the small traders who need to be informed about the GST to bring them under the tax ambit.
We list out five challenges that traders may face under the GST rollout:
- Lack of enough information about the new goods and services tax (GST)
- Following the GST rollout, all the manually-maintained account books have to be maintained electronically, and several small traders are not computer literate
- Traders will have to file returns three times in a month as against once in three months
- Local wholesale traders may find it difficult to maintain information on all products on computers
- Different taxes on products is also adding to the confusion among traders and buyers
Traders have requested the government to go a bit lenient on them for the first year of the GST rollout vis-a-vis some errors in transactions or not being able to become fully GST-compliant.
Given the far-reaching implication of the GST, it is important to ensure that everyone, including traders, becomes GST-compliant.
In the first few months, traders, especially small traders, feel the need for some time to understand the GST in its entirety.