Markets down shutters in protest

Most of the shops, wholesale and retail outlets in Kolkata remained closed on Friday following a one-day strike called by Bhartiya Udyog Vyapar Mandal (BUVM) against the rollout of Goods and Services Tax (GST). The strike was supported by the Federation of Traders' Organisation (FTO) of West Bengal. The traders alleged, they are not against the Goods and Services Tax (GST) but they are against the provisions and procedures of GST.

Shops and establishments, except those selling vegetables and medicines, were closed in most parts of Kolkata and the state. Burrabazar, the biggest wholesale market in Asia, was also closed. Shutters were down in the city's prominent retail hub New Market also. Shop owners across the city took out processions and protested against the GST rollout.

"The government of India has decided to implement GST from July 1. The traders have been a tax compliant society. But the way the format in which the various provisions of GST is being implemented, it is absolutely disastrous for our business and existence," said Taraknath Trivedi, the general secretary of Federation of Traders' Organisations (FTO) of West Bengal.

Trivedi said they have 70 lakh members across Bengal who took part in the strike. They want simplification and modification of GST as soon as possible. FTO has sent a letter to Prime Minister Narendra Modi and Union Finance minister Arun Jaitley requesting them to take a look into their demands.

"The legal provisions and procedural complexities have to be simplified. The threshold limit of GST should be increased from Rs 20 lakh to Rs 1 crore yearly turnover. The composition scheme threshold limit to be increased from Rs 75 lakh to Rs 1.5 crore yearly turnover and the tax liability should be maximum of 0.5 percent allowing Inter-State Trade," said Trivedi.

The traders also demanded that textile and the branded food items be exempted from GST. "We are scared about the Inspector Raj in the GST regime. It is not acceptable. We are demanding to abolish all severe penal provisions in the present format of GST," said a Burrabazar-based businessman who did not open his shop on Friday.

The traders also pointed out that the quarterly return system should be incorporated with easy procedural provisions instead of multiple returns every month. "You know, most of the small business owners cannot handle such procedural complexities. This present format of the GST is going to kill businesses across the country," said a shop owner at city's Shreeram Arcade.

The members of Malda Merchant Chamber Of Commerce conducted a rally on Friday and they burnt the effigy of the Union Finance minister to mark their protest. "The small traders will become unemployed and it will lead to an unnatural price hike of essential commodities," Ujjal Saha, the secretary of Malda Merchant Chamber Of Commerce said. The traders in Siliguri's Bidhan Market and Sevoke Road too did not open their shops on Friday.

The state government has opposed implementation of the GST from July 1 as it is "half-baked" and the country is not prepared for it, state Finance minister Amit Mitra said during a debate organised by a vernacular channel on Friday evening.

"Even if we are alone, we shall raise our voice. We have made it clear we are not ready. This is scary," said Mitra.

"We have said this repeatedly that GST must be rolled out systematically with full preparation. But we are heading towards an impending catastrophe," he added.

Mitra, who was the chairman of the Empowered Committee of Finance Ministers, said he had demanded a white paper on the preparedness of GST by the Centre. "Under GSTN, 300 crore data will have to be uploaded per month which comes to 3,600 crore data per annum and the Centre is not prepared for it," he said, adding that the final rules for the implementation of GST were announced on Wednesday, just two days before the rollout. "We decided to stay out of the event as if we would have joined, then we would have to sit and clap to welcome the Centre's move," he said. "There was absolutely no haste to implement GST from July 1. The Centre could have deferred it till the infrastructure was ready."

Mitra said in Germany and in France, the government took more than a year to get the infrastructure ready before implementing the Goods and Services Tax.

He said Chief Minister Mamata Banerjee had initially supported GST as it was supposed to reduce the tax burden on small and medium traders and benefit the common man. Also, the state's GDP would have gone up.

"But later the Centre refused to incorporate the suggestions made by the Bengal government and turned it into a tool to oppress small and medium traders."

Mitra asked the Centre why those running small and medium enterprises, who are responsible for 40 percent of the GDP, have gone on strike. "They are crying out loud, saying we are not ready for GST, give us some time," he said.

Mitra further added that because of GST, around 85,000 Central government employees have become idle and they will be deployed to run the offices set up by the Centre in every state to look after GST. "It will reinstate Inspector Raj as they have been authorised to arrest a trader who does not maintain the documents properly. The Centre will let loose these inspectors against the small and medium traders and will make their lives miserable. This hasty implementation will lead to utter chaos," he remarked.

Thousands of people involved with the textile industry will lose their jobs, he said. "Like demonetisation, GST will bring more harm than good to people and that is the reason why the state government has decided to stay away from today's (Friday) event at Parliament," he stated.