more-in The implementation of the Goods and Services Tax (GST) continues to be embroiled in confusion as various groups are coming out in the open seeking relaxation in its provisions. On Tuesday, the All Kerala Caterers’ Association and the Kerala Government Contractors’ Federation separately raised their concerns. Badusha Kadalundy, State president of the caterers’ association, said at a press meet that the 18% tax proposed by the GST Council for those with an annual turnover of ?20 lakh and above would affect their business. Hike in charges He said the caterers would have to raise their service charges if they had to pay the tax and the customers would turn away from them. Most caterers whose annual business was above ?20 lakh would manipulate their accounts to show that their turnover was lower to avoid tax payment. He urged Finance Minister T.M. Thomas Isaac to propose a uniform tax rate of 5% to make tax payment affordable to all. It would also boost tax collection, he added. Contractors’ concerns At another press conference, P. Nagarathnan, State general secretary of the contractors’ federation, said the officials were yet to figure out how to levy tax for the works completed before June 30 and the works which had started after completion of the tender process by that date. Most of their pending bills had not been cleared. Quarterly returns As per the new rules, they were supposed to file returns thrice a month and 18% of the tax should be paid in advance. Otherwise, they would have to pay a fine. Mr. Nagarathnan said most often contractors get their payment years after the completion of the work. The provisions would hamper the construction work taken up by various departments, he added. Mr. Nagarathnan demanded that the government works taken up before June 30 be exempted from tax payment. The compounding system that existed earlier should be brought back instead of making it mandatory to file returns every month. The proposal for advance tax too should be scrapped, he added.

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