New Delhi/ Mumbai: Federation of All India Information Technology Associations aka FAIITA, a registered national umbrella body over all state IT federations/ associations, has written to the Center, their expectations from the government on the forthcoming GST.
In a letter to the Government, Saket Kaput, Gen. Secretary of the association has said that the national forum is representing direct business interests of its’ 30,000 (thirty thousand) pan India member-business organizations, pursuing business nearing ₹20,000.00 Crores. The same has been shared by the association in their official group in the Facebook.
“Our members are primarily from SMB and MSME sector, spread across various geographies of the country, and have diverse business portfolio ranging from Importers, Manufacturers, Regional Distributors, System Integrators and Retailers of IT products and services. Factually these 30,000 members are begetting direct and indirect employment to millions of skilled and unskilled manpower, and contribute substantially to the state exchequer through direct and indirect taxes.”, the document reads .
While there are many categories listed for by the association, some of the broad categories are submissions on input tax credit of declared inventories of opening stock, submission on impracticality of e-way Bill under GST, submission on requirement for multiple , regime, submissions on rationalisation of GST Slab for all IT products and submissions on reversal of input credit availed.
Will Wait and Watch:
Besides this, president of the association, Champakraj Gurjar, president of the national association, says, the channel fraternity in India is undergoing a ‘wait-and-watch’ mode. Speaking about the new taxation, he said that the government should come up with a crystal-clear classification and resolve the queries of the dealers.
Stating that many GST experts, participating in various awareness sessions organized by the various associations are not able to clarify the queries of the members. Another issue, according to him, the members are facing are the stocks that are lying with them for years. “Because of the confusion in the market, the customer-facing channel partners are not stocking any products and fulfilling only bases on back-to-back orders.
He also said that it was the time the channel industry was coming out of the impact of the demonitization drive and suddenly the GST announcement has come. Gurjar also added that the refund process in the duty concessions. “The center should also come up with special notification promoting the local manufacturing of the IT and IT-related products. And there should be an extension period for the liquidation of the existing materials which attracts taxes like VAT, Octroi and more”, he said further adding that FAIITA is in full swing for the protection of the welfare of the members. “We had already, through the secretary, had represented the government. If needed, we will not hesitate to meet all the concerned departments and do the needful. I hope in this democratic system, the government will give us a patient ears.”, he concluded.