Recent reports suggest that the GST Fitment Committee has recommended increasing GST rates on some goods and services. The Nag Vidarbha Chamber of Commerce (NVCC), which represents over 1.3 million traders in Vidarbha, has strongly opposed these suggestions.
The proposed changes include raising GST rates on some items from 28% to 35% and increasing rates on several goods and services from 12% to 18%.
NVCC President Mr. Arjundas Ahuja expressed strong opposition, warning that the proposed GST rate hike would lead to higher prices and contribute to further inflation. NVCC Secretary Mr. Sachin Punyani pointed out that higher GST rates could discourage customers from requesting bills, which might increase cash transactions and reduce tax collection for the government.
Mr. Ritesh Mehta, the convener of NVCC’s Indirect Tax Committee, argued that there is no need for these hikes, especially since GST collections are already increasing every month. He suggested that the government should consider reducing GST rates instead of raising them.
Although Finance Minister Nirmala Sitharaman, who is also the Chairperson of the GST Council, has denied any official decision to increase GST rates, reports suggest that the GST Fitment Committee has prepared proposals for the upcoming council meeting.
The potential GST rate hike has especially concerned textile traders, with reports indicating an increase in GST rates on ready-made garments. As financial demands from welfare programs like the ‘Ladli Behna’ scheme place pressure on state revenues, state finance ministers are reportedly advocating for measures to sustain their income.
NVCC members criticized the dual taxation system, where taxpayers are burdened with both income tax and GST. They called on the government to reconsider the proposed hikes to avoid putting unnecessary financial strain on traders and the public.
This statement was shared through a press release by NVCC President, Mr. Arjundas Ahuja.