Firms want removal of CGST Act section citing cash crunch

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Ahilya Chamber of Commerce and Industry in a memorandum addressed to Goods and Services Tax (GST) Council seeking removal of Section 49(A) of CGST Act as the clause restricts cash flow adversely hurting businesses. In the memorandum given to CGST commissioner on Tuesday, the chamber has stated that Section 49 (A) of CGST does not allow dealers to utilize credit kept in one GST account for paying taxes and requires payment in cash for clearing the taxes. According to the chamber, due to this clause, dealers are forced to shell out more cash to pay taxes and this blocks capital adversely hitting business.

Ahilya Chamber of Commerce and Industry general secretary Sushil Sureka said, “As per Section 49 (A) of CGST Act, despite having credit in one of the GST accounts dealers are not able to utilize credit and are forced to make cash payment for taxes.” Industry representatives said delayed refunds and financial crunch in market are badly hurting business, especially for small and medium enterprises. The chamber said that dealers are already bearing the burden of depositing GST from their own funds as payments against their bills comes much after due date of GST payment.

An official from state commercial department acknowledged the memorandum. The chamber has also objected to addressing hundreds of dealers in one single email by the department without hiding dealers IDs through citing security concerns. Sureka said that they have objected to an email, where the department has addressed 200 dealers in one single email and has attached an excel sheet that has GST numbers, names and addresses of dealers visible to all recipients. Industry representatives also shared their concerns about issues pertaining to taxes on value addition and input tax credit.

Read more at: https://timesofindia.indiatimes.com/city/indore/firms-want-removal-of-cgst-act-section-citing-cash-crunch/articleshow/67967041.cms

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