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BDC&DA seeks Union govt to enhance GST composition scheme for traders from Rs. 75 lakh to 120 lakh

Nandita Vijay, Bengaluru
Friday, June 16, 2017, 08:00 Hrs  [IST]

The Bangalore District Chemists & Druggists Association(BDC&DA) has demanded that the Union government should enhance the GST composition scheme for traders from Rs. 75 lakh to Rs. 120 lakh.

This is because the chemists and druggists deal not only with medicines but also other goods coming in the fold of zero percent, 5 percent, 12 percent, 18 percent and 28 percent.The enhancement of GST composition scheme to INR 120 lakh will make a smooth transition of the business from the present taxation format to the GST platform without  shortfall of goods for the general public, said V Hari  Krishnan, president, the BDC&DA  in his communication to the Union  Finance Minister Arun Jaitely.

The association has also requested to consider input claims for excise duty from the present 40 percent to 60 percent on Value Added Tax (VAT) claims, he added. The communication is also directed to the Karnataka chief minister Siddaramaiah and the State Commissioner of Commercial Taxes where Krishnan stated, “We  appreciate the efforts of the government for considering GST composition scheme for traders from Rs. 50 lakh to Rs. 75 lakh during the 16th GST Council meeting, we wish to bring to your notice that traders in retail are self employed with skeleton staff. These retailers are conducting business with working hours of more than 12 hours per day without holidays”.

“Therefore we request you to consider the GST composition scheme to enhance from the present Rs. 75 lakh to INR 120 lakh.  We also request to consider the present input claim of the excise duty which is at 40 percent to 60 percent which may in average compensate the excise duty which has been already paid by the trader in in-built price to the manufacturer, marketer and first seller of the state. In fact we have made a representation to this effect in our correspondence dated  May 9,2017”, he said.

According to the BDC&DA president, retailers and wholesalers are no way  direct tax payers. Now the point is whether the wholesaler can claim input tax  which covers the excise duty, cess and VAT in the closing stocks, said the BDC&DA president.

“We request you to consider this at the 17th GST council meet. We would also appreciate the move to bring down the levy of insulin to 5 percent under GST which has given a  huge relief in taxes for the diabetic patients”, he said.


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