Exemption sought from test purchase regulation under GST by TNFMA

MADURAI: Tamil Nadu Foodgrains Merchants Association (TNFMA), Madurai has sought the intervention of central and state governments to exempt the small level stakeholders, who are doing provisional business, from the test purchase regulation under the GST.

Under the GST Act, to avoid tax evasion new regulations such as ‘test purchase’ are being formulated and implemented at many places across the country.

For the past several years, provisional businesses were running in shops within a small area of 100 to 200 square feet, SP Jeyapragasam, president, TNFMA, Madurai said on Saturday.

“Mostly, these kinds of businesses are run by husbands and wives. In certain commercial establishments, employees and menial labourers are employed.

“But the majority of the commercial establishments are still not in possession of computers to facilitate the billing.” he said.

“There are at least 100 to 150 different items available on stands for sale and those engaged in such small shops till today, note down the volume of sale in a white paper and during the end of their business hours they will sum up their total sales and raise the sale bills,” he added.

On September 29, a team of officials in Madurai imposed fine to the tune of Rs 20,000 to several small level stakeholders doing provision business for not issuing sale bills for purchase value up to Rs 1,000.

“For a commodity, whose value or cost is Rs 1,000 per unit, then 5% tax will be levied under GST costing Rs.50 and with a penalty of Rs.50, totally it should be Rs.100 only. At the same time, if the stakeholder’s annual turnover is less than Rs.1.5 crore, then the tax will be Rs.10 and adding a penalty of Rs.10, it will totally be Rs 20 only,”’ said Jeyapragasam pointing out that the huge fine was unfair.