Friday, March 24, 2023

CNCCI takes serious note of traders paying GST to other States

Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has taken a serious note of many traders allegedly indulging in the unethical practice of getting their GST registered in other States, especially in neighbouring States, and paying GST to those States while importing in bulk for supply, retail and reselling in Nagaland.
CNCCI chairman Dr Khekugha Muru and general secy. Dr Seyievilie Mor also claimed that it had come to their knowledge that many establishments were purchasing in bulk off the counter from other States by paying GST to those State and importing to Nagaland for supply, retailing and resell.
Noting that many godowns, distributors, wholesalers etc. had mushroomed in neighbouring towns, it clarified that while they had no objection to such a development, the crux of the matter was most of them paid GST to other States while conveniently wholesaling and distributing their products in Nagaland through small private cargo vans/vehicles throughout the day.
In all the three cases, they claimed that it impacted GST revenue of Nagaland. While the exact amount of revenue losses could not be ascertained at this point of time, they said they were convinced that it ran into several crores of rupees annually.
CNCCI warned such business establishments and traders that they would not hesitate to take stern action against them and also report to appropriate authorities to initiate action against them.
They reasoned with such business houses and traders that since their principal place of business was Nagaland and were availing benefits like roads, electricity, security, sanitation, etc, from the State, it should be their responsibility to pay GST to Nagaland for development, services and facilities. Appreciating the Department of Taxes for being able to adapt to GST regime at ease despite many difficulties and for being every ready to help the business community, they stressed that GST revenue generation was the most important component for State fiscal health. Therefore, they request the department to double their efforts on the three areas to improve GST revenue collection.
It also directed all confederate district chambers to be vigilant of unethical businesses practices and assured the department of Taxes that CNCCI would extend all cooperation if needed.


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