Last Updated : Thursday, November 28, 2019 19:37:28

SAURASHTRA OIL MILLERS request FinMin to hold new norms for Input Tax Credit

RAJKOT – In a letter written to the Finance Minister Nirmala Sitharaman, Saurashtra Oil Millers body – Saurashtra Oil Millers Association (SOMA) has requested to put on hold the new norms for the Input Tax Credit.

The letter undersigned by the SOMA President Sameer Shah, as addressed to Sitharaman states that the new norms are just not harsh but are also damaging the entire business community and with the stipulated terms and conditions as narrated vide new norms it will be almost impossible to get input tax credit in time, the letter emphasizes.

The letter details written by SOMA with subject caption, “A request to put on hold the newer norms going to get effective for the Input Tax Credit” further states that, we are an apex institute since 1948 which is representing the edible oil industry as well as the farmers of the region.

Government and GST Council are going to implement new norms while allowing input tax credit. It is not just harsh but also damaging to entire business community.

By new norms it will be almost impossible to get input tax credit in time as condition of 80% matching criteria to get credit.

Madam, as you know that even after two years of GST implementation still there are structural and technological problems in the system.

In the last days of the months when GSTR-3B are to be uploaded, the system and server are either not working or are very slow.

There are traders (suppliers) who have tendency to feed the system late or not on monthly basis, some are filing their returns after every three months, which is legitimate.

In such situation it is not prudent to withhold the tax credit to those who are genuine and regular business units.

Moreover, there are already other few stringent measures by which one has to file return within time such as at present those GST number holders do not file their returns for two months then their “e-way bill” will not be generated etc., so new restriction is unnecessary.

Madam, in last two months the figures of GST collection are diminishing but it does not mean that there is any tax evasion. It is happening because of severe recession in the economy.

Government figures and official data of CSO are revealing the fact. IIP and GDP are running at lowest data of many months and years.

In such conditions it will not be prudent to make conditions more difficult for trade and industry.

This new norms will damage the revival efforts of the economy.

It will block the productive use of working capital for many units.

Therefore, we urge you to find better way to enhance the Tax Collection by boosting economy through removing un-necessary hurdles and trust the trade and industry for their honesty.

Madam, recently you and your Government have taken several steps to revive the economy, which are appreciable.

We can feel that your efforts are serious and sincere which will give good results in medium to long terms.

In the series of various efforts a major step has been taken by slashing corporate taxes in a big way.

It is a right and bold steps in the right direction.

It is right step but not ample as this relief has not been extended to proprietary, partnership and LLP units.

It is quite disappointing to note the differential treatment to these kind of business structures.

We request you to extend the tax relief to all kind of business structures in line with corporate entities.

We once again request you to postpone the induction of any new norms while offering legitimate input tax credits and please allow tax relief to all kind of business structures.

To read the letter in details, please CLICK here.


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