CAIT Mumbai Proposes GST Reforms Ahead Of 53rd Council Meeting

Aiming at advancing the growth and efficiency of India’s GST system, the Confederation of All India Traders (CAIT), Mumbai Unit, has submitted a detailed proposal to the Hon’ble Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, ahead of its 53rd GST Council meeting scheduled for June 22, 2024.

Dilip Maheshwari, President of CAIT Mumbai, expressed the urgent need for ongoing evolution within the GST framework to foster a more efficient, transparent, and growth-oriented system. “Our proposal focuses on addressing critical issues faced by MSMEs and advocates for reforms that will simplify compliance, reduce complexities, and stimulate economic productivity,” stated Maheshwari.

The proposal outlines several key reforms, including the abolition of Reverse Charge Mechanism (RCM) for SMEs, reducing GST on medical insurance for senior citizens to zero, and revisiting Section 43 B (h) to ensure equitable treatment across businesses of varying sizes.

Shiv Kanodia, General Secretary of CAIT Mumbai, highlighted specific concerns related to the textile sector and proposed targeted reforms to bolster job creation and competitiveness. “The textile industry, a vital component of India’s economic fabric, requires immediate attention to rectify GST anomalies, particularly regarding IGST/GST refunds for capital goods,” Kanodia emphasized.

Among the suggested solutions, CAIT proposed the introduction of a refund scheme for MSMEs and startups, reduction of GST rates on textile machinery from 18% to 5%, and implementing a Minimum Import Price (MIP) on imported woven fabrics to safeguard domestic manufacturers.

Maheshwari and Kanodia highlighted the importance of inclusivity in policy-making, advocating for the representation of MSME trade associations in all GST reform discussions. “It is crucial that the perspectives of MSMEs and the common man are heard and integrated into decision-making processes,” they jointly stated.

As job creation is key emphasis of the Government, the Honorary National Secretary General of CAIT, Delhi, and now newly elected Member of Parliament Praveen Khandelwal, along with CAIT team will be meeting FM Nirmala Sitharaman ji, to push for GST reduction from 5% to 3%, across the entire value chain.

As preparations intensify for the upcoming GST Council meeting, CAIT Mumbai remains optimistic about the potential impact of their proposals in fostering a more supportive environment for Indian businesses.