Single taxation can help rectify GST flaws pointed out by Kovai businessman: AFCCI

MADURAI: It is very unfortunate that an issue concerning a hotelier Srinivasan, who pointed out GST flaws at a meeting chaired by Union Finance Minister Nirmala Sitharaman in Coimbatore, has been blown out unnecessarily.

A person, who has been involved in the hotel business for decades, expressed his difficulties while paying GST, and there is nothing wrong with it.

However, it is not clear whether the hotelier himself apologised to the Finance Minister or made to apologise. It is not the matter now as it would only sideline the issue, S Rethinavelu, president, Agro Food Chamber of Commerce and Industry, Madurai said on Saturday.

He wondered what could have been done to provide a solution for the point raised by the hotelier. At a press conference, the Finance Minister informed that the GST Council appointed a Group of Ministers (GoM) already to go into the rate of taxation of every commodity and it would shortly submit its report, which is not an acceptable solution.

As a hotelier, he stated that different rates of taxes for sweet, savoury, bun and bun with cream were creating a lot of confusion for the hoteliers. He pleaded only for uniform taxation for related commodities in trade. Similar difficulties were experienced by different sections of trade and industry too. When most countries adopt the GST system of a single rate of taxation, which, at present, could not be adopted in India. Why not introduce one rate for one section under HSN code, he asked, adding that this could be the only solution to appease hundreds and hundreds of Srinivasans engaged in different trades.

Citing these, Rethinavelu sought Prime Minister Narendra Modi’s intervention in the GST issue and group all similar products under one taxation rate to simplify the implementation of the progressive pan-India taxation.