STATE TIMES NEWS
JAMMU: A delegation from the Chamber of Commerce and Industry, led by President Arun Gupta, along with Sr. Vice President Anil Gupta and Secretary Rajesh Gupta, met with Union Finance Minister Nirmala Sitharaman and Minister of Commerce & Industry Piyush Goyal, in the presence of Dr. Jitendra Singh, Minister of State in the Prime Minister’s Office.
During the interaction, Arun Gupta highlighted several concerns facing the business community, particularly due to amendments in the Income Tax Act under Section 43B(h), which mandates that payment for purchase bills must be made within 15 to 45 days. Failure to meet the deadline results in an interest penalty of three times the RBI bank rate, compounded monthly.
He noted that this amendment, which does not apply to medium and large enterprises, would push traders to prefer dealing with these larger entities, negatively affecting micro and small businesses.
Arun Gupta also brought attention to the impact of GST on small traders, such as Dhabas, Tea Stalls, Halwais, and Bakeries, who were previously paying lump sum sales taxes of Rs. 3000 annually during the Sales Tax regime and Rs. 12000 during VAT. However, under GST, these traders are now paying 5% GST on total sales without any input credit.
He requested a reconsideration of this issue, proposing either a 1% GST rate or a return to a lump sum payment system, similar to the pre-GST regime.
Additionally, Arun Gupta discussed the need for a more localized focus in the Prime Minister’s Industrial Incentive Package.
He pointed out that while the package has led to increased investment, local youth are not being prioritized. He proposed enhancing the package from Rs. 28,400 crore to Rs. 75,000 crore and suggested capping at least 20% of the industrial land allotment for local entrepreneurs.
In response, Finance Minister Nirmala Sitharaman assured the delegation that their concerns would be prioritized, and she would address the payment issue with the MSME department. Sh. Piyush Goyal also assured that local entrepreneurs would be given preference in the new industrial package.
