Nagpur: Recent reports suggest that the GST Fitment Committee has recommended increasing GST rates on certain goods and services. The Nag Vidarbha Chamber of Commerce (NVCC), representing over 1.3 million traders in Vidarbha, has vehemently opposed these proposals.
According to the proposed changes, GST rates on some items could rise from 28% to 35%, while rates on several goods and services could increase from 12% to 18%.
NVCC President **Mr. Arjundas Ahuja** voiced strong opposition, warning that such a hike would lead to increased prices, further fueling inflation. NVCC Secretary **Mr. Sachin Punyani** added that higher GST rates might discourage customers from demanding bills, potentially increasing cash transactions and reducing the government’s tax collection.
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Tuesday 28 Jan. 2025
The convener of NVCC’s Indirect Tax Committee, **Mr. Ritesh Mehta**, argued that there is no justification for such hikes when GST collections are already rising month-on-month. He emphasized that the government should consider reducing GST rates instead of increasing them.
Although Finance Minister **Nirmala Sitharaman**, the Chairperson of the GST Council, has denied any official decision to raise GST rates, reports indicate that the GST Fitment Committee has prepared proposals for the upcoming council meeting.
The possibility of a rate hike has particularly unsettled textile traders, as reports suggest an increase in GST rates on ready-made garments. With financial demands from welfare schemes like the “Ladli Behna” program putting pressure on state revenues, state finance ministers are reportedly pushing for measures to sustain their revenues.
NVCC members criticized the dual taxation system, where taxpayers bear the burden of both income tax and GST. They urged the government to reconsider the proposed hikes to prevent undue financial strain on traders and the public.
This information was shared through a press release by NVCC President Mr. Arjundas Ahuja.
