GST: Traders fret over government move to credit tax only on stock less than 1-yr old

A trader, Raj Kumar, who owns a readymade garments shop, said, “Despite giving discounts, there is about 50 to 60 per cent stock left. What will I do with the stock purchased in 2015 which is yet to get sold.”

By: Express News Service | Chandigarh | Published:June 28, 2017 3:35 am

With just two days to go before GST is rolled out, city traders are a worried lot over Centre’s decision to credit tax only on stock which is less than one-year-old. Traders said that they still have about 60 per cent of the old stock, which is more than two-year-old and they have paid the taxes. “There are apparels, electronic appliances, shoes and several other non-perishable goods which are more than two-year-old. Sometimes, they don’t get sold. Now, government says that they would credit the excise only on stock which is purchased within one year. We are in loss,”said Anil Vohra, president of Chandigarh Beopar Mandal, which will also send a letter to the Union Finance Minister regarding the issue.

The Chandigarh Beopar Mandal has also decided to take a call on the bandh on June 30 in protest of the government’s strict directions on GST.

“Everybody is confused. The government should offer some relaxation initially. They should understand the genuine demands of the traders. We are not opposed to GST. We just want them to relax certain conditions until one completely understands the entire process,” added Vohra.

Another trader, Raj Kumar, who owns a readymade garments shop, said, “Despite giving discounts, there is about 50 to 60 per cent stock left. What will I do with the stock purchased in 2015 which is yet to get sold.”

Puzzled over the lack of clarity involving GST, several city-based traders are hiring accountants who would be doing the financial exercise.

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