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GST : a trending headache for Tripura Traders'

Mrinal Kanti Banik

In the very sense to pertain the entire Country into a serene compiled village of trade and commerce, Narendra Modi led NDA government imlemented GST(Goods and Service Tax), expecting an intellectual global reform followed by the trend trolling "Demonetization".

Though, the initial presentation of GST was a coronary effort of outgoing Manmohan Singh led UPA government, the vertex credentials omehow crowned to the NDA. Various financial institutions of the country fixed both the courage-worthy steps of 'Demonetization' and 'GST' as an institutional reforms in the field of finance.

As per the model of GST, the taxes levied on the commodities will be similar for all the states. The suffixation of distinguished taxes as  VAT, excise, entry tax, CST and other service related taxes which were levied as per the code of conduct defined followed provincial allocations would be adjusted to a single actuated taxing process. In the meantime, to enable the fixation and adjustment of all the provisions a council underneath the finance ministry denominated as "GST Council" also came into action.

To ensure a prophetic outlook towards th centralization of the desired form of taxation, it was framed as an online sect action. Porpoutedly, to maintain the nature a fluent one, a network was also stabilized, titled GSTN. Keeping Infosyss as the service managing performa, an activated section 25 company privately owned company underneath the grasp of Union government has been launched. Moreover, 34 GST Suvidha Providers also appointed for the smooth action of the pass-through portal developing back and modules for 25 states.

Now, with fun flow of making GST, a mandatory taxpaying system except going for a odd or even call has turned it into a severe headache. It was unanimously declared that the MSMEs(Micro and Small Level Enterprises) and the small level traders right from Wholesalers to Retailers will be the superior gainer throughout this reform, the bare truth, at least in Tripura has contradicted most of the desired outcomes of the expected outcomes of the process.


A Brief Discourse on How GST levied on a product.


Supply of goods

GST flow

Input Cost

Sale price

GST collected

A weaver sells a fabric to a tailor in Rupees 108 per metre

The Weaver pays GST of Rupees 8










The tailor sells a ready made completed shirt to a Retailer for Rupees  270

The tailor pays GST of Rupees 12( after input tax claim. Weaver claims tax credit of Rupees 8)










The retailer sells the readymade shirt in his showroom for Rupees 540

The retailer pays GST of Rupees 20. (after input tax claim. The tailor claims tax credit of Rupees 12)










The consumer buys the shirt by Rupees 540.

No Tax credit claim. The consumer pays entire GST of Rupees 40.










Sources:   www.relakhs.com



The first and foremost problem that our state's traders are facing is the underrated information panel it perceived. The GST act came into imposition from the July 1st, 2017 and till date the business owners of the state confusion about the forms and tactics of GST.

Starting from the very deliberate problems, most of the established business farms unlike the rest of the country were handled manually. Imposition of GST which has its automated computarized form has disturbed fluent atmosphere of the Business outlets.

According to the economic review report 2016 of Tripura, the registered number of MSMEs in Tripura is around 3,447; which is expected to have an increase in the past couple of years. Moreover, a huge number of small scale business farms starting from CNF to Retailing clique is operational here.

It is conveniently reported and known from further observation that the lion's share of the state's trading phenomenon is not at expertise technically to adopt GST as a familiar diaspora. Moreover, the trend of settling liquid money flow in the business as traditionally perceived from the predecessors is also facing a crunch due to the electronic ledger maintainence and other automated services. As discussed in the above figure the refund claims are also dependent on the suppliers and other machineries involved in the fray of business which is also a cash-credit discontent for the businessmen of our state. On the other hand, the greatest problem which is more relevant is the deployment of additional resources. As kt is known for all, the major fraction of the MSMEs and Business establishments are still fighting heart and soul to tackle down the workers with a sufficient pay structure whereas the imposition of GST has triggered a burden of extra resources to be deployed.

Meanwhile, a number of fraudsters also detected in the state, though before official setbacks the mutual concession was introduced to curtail the insomnia.

According some reports from the southern part of the state, to maintain a clean ledger, the big Distributing farms had opted an unethical line of action.

As per the rules, except the final consumer, the entire trail starting right from manufacturer to ratailer has to merge their GST registration number for a certain product but a crooked sanctum of business farms are initially mishandling the procedure.

As per the information collected from Salestax offices based outside the city area, a huge number of businessman has filed GST returns nill. Meanwhile, a number of small traders expressed that their returns which were claimed are hugely greater in comparison to the products they bought. And it is all happening because still now the process of buying and selling is carried out using unregistered bills or white papers bills instead of GST recognized bills which is entirely against the provisins scripted in ,"GST bill".

A couple of days earlier a huge scam relatively having similarities what is going on in the state has been unfolded in Chandigarh which is suspected to be worthed Rupees 200 crore.

However, the Vigilance department and Enforcement Directorate is still not sniffing anything wrong but the situation might follow a severe unwanted arrests in the state.

So, it is also could be  considered as an adverse affect of GST implementation without conquering the atrocities it could reflect in the future. It is also worthy to mention here that the rate of GST that is levied in India is also numeraly greatest of all 140 countries where it has imposed into action earlier. Though, aftermath policies of NDA government has curtailed the levied charges in some of the products, the rates are still unsatisfactory for Tripura traders.





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