Traders Advocates for GST reform and buyer protection

One of the primary challenges pertains to certain sections of the GST Act. Specifically, to Sections 16(2) and 16(2) C, which stipulate that if a seller fails to deposit the GST collected from the buyer into the government treasury, the Input Tax Credit (ITC) of the buyer may be reversed.

This provision is unduly stringent and need for its amendment or complete removal. Argument revolves around the notion that genuine buyers should not bear the brunt of any intentional or unintentional fraudulent activities committed by suppliers.

In addition, there is the need for clear and comprehensive guidelines for buyers. Traders seek explicit instructions from the Government of India regarding the specific documents that buyers need to maintain and the portals they must consult. Once buyers have diligently fulfilled all the necessary checks, their entitlement to the 18% GST credit should remain intact, assuring them of a stable and predictable business environment.

The issue of fake invoicing and unfair competition has emerged as another major concern. There are instances where unscrupulous suppliers engage in deceitful practices, such as charging significantly lower prices through the use of fake invoice, directly undercutting genuine suppliers. Addressing this issue is paramount to fostering a level playing field and safeguarding the interests of legitimate traders.

Creating an environment conducive to ease of doing business and reducing compliance burdens is pivotal for the growth and prosperity of small and medium-scale enterprises. Confidence is needed in the government’s commitment to supporting genuine and hardworking individuals within the business community, acknowledging the crucial role they play in driving economic growth.

It is emphasized that the importance of regular dialogue and collaboration between traders and government bodies to create an inclusive and favorable business ecosystem that fosters growth, innovation, and sustainable development.