Traders observe strike in Punjab, lodge protest against harsh provisions of GST

Ludhiana, June 30, 2017: Traders shut down shutters of their commercial establishments against the implementation of goods and services tax (GST) almost in all the important cities of Punjab today, overall it was a mixed response to call for strike.
Speaking to `City Air News’ on Friday, Punjab Pradesh Beopar Mandal president Pyare Lal Seth and secretary Mohinder Aggarwal told that almost fifty percents shops remained closed in interior city of Ludhiana, of them, most of the shops were got opened in the afternoon. They said the wholesale market remained totally closed in Amritsar. The strike by traders also got a mixed response in Patiala, Jalandhar, Fatehgarh Sahib and other places.
The traders’ leaders said, “It was a symbolic protest against harsh provisions of GST”, adding otherwise, they did not oppose the imposition of GST. They said the government was imposing GST in a hurried manner, adding the government should have given atleast two months time to understand all aspects of GST before its implementation.
Further, they said all powers are with GST Council but it was regretted to note that not representative of traders community had been included in this Council. Had there been a representative of traders in the GST Council then the situation could be something different today, they pointed out.
They also recalled a finding of Vijay Kelkar Committee that the law making and law enforcing agencies should be separate in the larger interest of those on whom law is to be imposed.
Speaking about some of the harsh provisions of GST, Aggarwal said it would be very difficult for dealers dealing into trade of multiple items to maintain stock registers because HSN code or Harmonized System Nomenclature code is different of every item. He added sixty per cent of traders used to deal with multiple items.
Another harsh provision in GST was the provision of prosecution up to five years, said Aggarwal, adding there should be provision of imposing fine on tax evaders instead of prosecution. Besides, the GST system would lead to “Inspector Raj” as the officers of ST Department would be empowered for conducting searches and seizures at the premises of traders, these powers were with the officers of Income Tax so far.
Further, he said specific software was required with every dealer under the GST regime, adding neither the government nor the dealers were complete ready for the change. He told that there were around 84 lakh VAT dealers across the country, the number was about to double under the new tax regime. Of them, 50-60 per cent dealers were without adequate infrastructure, resulting to which dealers had to make “dead investment” worth about Rs.30,000 crore to Rs.35,000 crore in shape of creating infrastructure.
He further said dealers would be liable to get ITC on an year old stock under the GST regime which should be for two years. And this ITC was to be consumed within six months.
Asked about their next course of action, the traders’ leaders told that a meeting of Bhartiya Udyog Vyapar Mandal would be held on July 6 in New Delhi, in which future course of action was to be decided.