Traders in Tiruchi are expressing strong opposition to a new Goods and Services Tax (GST) rule, which mandates an 18% tax on commercial properties, effective from October 10. This rule applies to all commercial establishments, regardless of size, under the reverse charge mechanism, meaning tenants must pay the GST even if property owners aren’t registered. The rule affects small businesses such as tea and coffee stalls, snack vendors, and more, raising concerns about increased operational costs due to the inability to claim input tax credits. Traders argue this could elevate working capital requirements, impacting small manufacturers and service providers leasing properties. R. Ramesh Kamak, a Chamber of Commerce member, described it as potentially the worst GST-related rule to date, foreseeing political and economic repercussions if not reconsidered. The policy’s critics, including Praveen Thangaraj of the Tiruchirappalli Hardware and Plywood Traders Association, warn of escalating product and service prices, affecting both traders and consumers. The discontent has sparked protests across Tamil Nadu, with more actions being considered by trade bodies, emphasizing the heavy burden of GST on both small and large traders.
Original Story https://www.thehindu.com/news/cities/Tiruchirapalli/18-gst-on-commercial-properties-evokes-strong-opposition-among-traders-in-tiruchi/article68931765.ece
Category : Tiruchirapalli
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