Grave issue of 36(4) needs to be solved to save small traders/manufacturers: trade body members ask MoS in Centre on visit to Surat

Surat: Minister of State for MSME Pratap Sarangi was on visit to Surat last week during which a representation was made before him by Confederation of All India Traders (Gujarat) regarding grave issue of GST 36 (4).

‘Traders and manufacturers with less than Rs. 5 crore turnover need to file return once every three months(Quarterly) while those with turnover above Rs. 5 crore need to file return every month. When those having above Rs. 5 crore turnover purchase something from those with turnover lesser than Rs. 5 crore, the suppliers need to wait for 3 months to get tax credit. For this reason, major manufacturers have stopped doing trades with smaller ones. They don’t release payment until credit is deposited. For this reason, small and medium scale manufacturers and traders are facing major financial difficulty,’ said Pramod Bhagat, head of Gujarat unity of CAIT.

The trade has shifted to bigger players, while smaller players are facing great difficulty to sustain their business, said a trader adding that buyer gets 10% credit only after 2A return shows credit. In case of quarterly filing by small manufacturer and monthly filing of major buyer, mismatch appears between 3B and 2A return and therefore a major trader/buyer fails to get credit. The economic cycle slows down and uncertainty pertains due to long three months wait for payment to be released. This is harming the small traders so much that they face difficulty to sustain in the market.

DeshGujarat

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