Nearly 82 per cent or 1.7 lakh traders have registered under the new single tax system.
Hyderabad: Trade and industry bodies want the government to be lenient for at least one year on filing of returns as many more businesses come under the GST regime for the first time from midnight today.
The Centre is all set to roll out the Goods and Services Tax (GST) at an event planned in the Central Hall of Parliament at midnight today. The GST in various slabs will be implemented throughout the country abolishing the old tax structures.
According to Ravindra Modi, president of the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry, there are several slabs under GST and that it should be called one commodity-one tax, and not one nation-one tax.
He said it would take at least six months for the trade to get accustomed to the new regime as there are several confusing elements which even some of the government officials are not well versed with.
"The implementation of GST is historic for our country. This is one of the bold reforms that the government undertook after independence. But there are some issues that need clarity. We will learn about it only after implementation," Modi told PTI.
"Many more new traders and service providers will now come under the tax fold. They need some time to become familiar with the taxation and filing systems. So, the government should be lenient for at least one year in order to facilitate all the small traders to get accustomed to the system," he said.
Citing an example, he said the sweets fall under five per cent slab while the confectionery comes under 18 per cent bracket, leaving some confusion on the category products.
Telangana Finance Minister E Rajender yesterday said the state is ready to migrate to GST though it is looking up to the Centre for some solace with regard to revision of tax rates on about 35 items.
According to him, nearly 82 per cent or 1.7 lakh traders have registered under the new single tax system. Though he indicated that the state may lose Rs 2,000-Rs 4,000 crore annually, a senior official said the Telangana may lose about Rs 600 crore, based on the growth of the tax revenues last year.
The state registered 17.9 per cent growth in tax collections last year. The Telangana government submitted a representation to the GST Council seeking lenient view on some of the state government projects and also the beedi industry.