GST completes two years, VAT still problem for business in Himachal

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The GST was introduced by the Government of India on July 2017, it completed two years this month. But businessmen in Himachal are still perturbed with VAT (Value Addition Tax) as state has not gone for one time settlement of taxes that were active in state before the launch of GST. There are about 90,000 registered dealers in state and many of them have to deal with their pending VAT tax assessments. Principal secretary for excise and taxation department of state Sanjay Kundu said that the matter was reviewed by the department in routine meetings but this was a policy matter so it would take time to work out the resolution on this. “The matter is in our knowledge and review meetings are underway regarding the same,” he said. The assessments related to VAT tax were to be done till July 2017, when GST was introduced in country.

Despite of this, an inquires revealed that there are many businessmen in state whose VAT assessments have not been done. Many states in the country have rolled out schemes for settlement of state taxes after GST was introduced. Maharashtra government had launched AMENSTY scheme for settlement of pre-GST state tax disputes to ensure that the government recovers outstanding taxes and also clears the backlog of long pending assessments. “I came to know about few traders who are getting calls that their VAT tax of three years before is still pending,” he added. President of Hotelier association, Ashwani Bamba said that the department could be opened the pending assessments which kept both businessman and officials in a worry. “State government must consider this problem being dealt by the businessman in state. This is also resulting in adding untimely tax burden on employer who is already bearing load of salaries of employees,” he said.

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