Removal of arrest provisions, higher prosecution threshold of ₹5 crore and lower general penalty will ease long-standing fears among small traders: Sanjay Gupta
Lucknow: Sanjay Gupta, State President of the Uttar Pradesh Adarsh Vyapar Mandal, has welcomed the decisions taken at the 57th GST Council meeting. He said the decisions bring major relief to crores of small traders, retailers, MSMEs and startups across the country. In his view, they will give fresh momentum to Prime Minister Narendra Modi’s vision of “ease of doing business.”
Gupta said that removing the arrest provisions under GST, raising the prosecution threshold from ₹1 crore to ₹5 crore, and cutting the general penalty from ₹25,000 to ₹10,000 will address the concerns small traders have carried for a long time. This will build a climate of trust in tax compliance and spare honest traders from unnecessary legal pressure.
He described the proposed annual return and quarterly tax payment system for traders with turnover up to ₹5 crore as one of the most important reforms for small traders since GST was introduced. It will reduce the burden of filing returns repeatedly and dealing with complex procedures, save time and resources, and let traders focus more on growing their businesses.
He said that allowing small sellers to trade across different states through e-commerce platforms opens up new opportunities for lakhs of small shopkeepers, home-based industries, artisans, and women and rural entrepreneurs. They will now be able to reach customers across the country without extra hassle, expanding both their income and their market.
He added that the automatic settlement of 90 percent of eligible refund claims within just three working days, and the reduction in the approval period for refund applications from 15 days to 10, will go a long way in easing the working capital problems of small and medium traders. With money no longer stuck for long periods, their cash position will be stronger.
He also welcomed the decision to limit vehicle inspections to cases backed by specific intelligence and prior permission. According to him, this will reduce needless obstacles in goods transport, save time and give traders better logistics support.
Gupta said the decisions on input tax credit and refunds related to employee health and life insurance, telecom towers, pipelines, and plant and machinery will also prove positive for industry and trade and encourage investment.
In conclusion, he thanked and congratulated Prime Minister Narendra Modi, Finance Minister Smt. Nirmala Sitharaman and all members of the GST Council.
