All India Association of Chit Funds welcomes the Goods and Services Tax (GST) - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Tuesday, May 23, 2017

All India Association of Chit Funds welcomes the Goods and Services Tax (GST)

All India Association of Chit Funds welcomes the Goods and Services Tax (GST)

All India Association of Chit Funds welcomes the Goods and Services Tax (GST) which is one of the biggest taxation reforms to take place in India, as it will replace all indirect taxes levied on goods and services by the Government, both Central and States. 

Government’s effort to create a single, cooperative and undivided Indian market to make the economy stronger and powerful is highly laudable. 

Though it is indeed a very bold step on the part of the Government, our industry members have a mixed reaction to the levy of 12% on the chit funds. 

The good news is we are not bracketed with NBFCs and not included in the 18% slab. The bad news, however, is that we are not in the 5% slab which we are eligible for and expecting.

The announced rate of 12%, though with ITC, is not feasible to absorb for the chit companies in view of the 5% cap on remuneration. Neither can it be passed on to the subscribers as it would render the chit model cost-ineffective. This is on account of the fact that majority of the subscribers, especially in the lower and middle income households are savers.

The optimum rate of 5% alone would improve the compliance level of the Act and thus enhanced revenue to the State. We are sad that we will not be able to give our best to the financial inclusion cause on account of the higher slab.

The rates apart, the Narendra Modi Government with specific reference to the Finance Ministry, deserve all appreciation in finishing this massive exercise in a time bound manner.
The next challenge is the implementation of the legislation with simplified procedures and we look forward to hand-holding approach from the Government.

Mr. P. J. Krishnamurthy
President
president@aiacf.com


Mr. T.S. Sivaramakrishnan
General Secretary
gensecy@aiacf.com


Mr. A. Chitrarasu
Organising Secretary
orgsecy@aiacf.com


Mr.Mohinder Aggarwal
Treasurer
treasurer@aiacf.com

All India Association of Chit Funds,
Bansi House - 1/24, Asaf Ali Road,
New Delhi - 110 002.


For more information please contact:
Nikhil Mansukhani
Adfactors PR

9833552171 / 9820831932

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அகில இந்திய சிட் ஃபண்ட்கள் சங்கம், சரக்குகள் மற்றும் சேவைகள் வரிக்கு (ஜிஎஸ்டி) வரவேற்பு அகில இந்திய சிட் ஃபண்ட்கள் சங்கம் (All India Association of Chit Funds, https://aiacf.com/),...
All India Association of Chit Funds welcomes the Goods and Services Tax (GST) Reviewed by S. Chitra on May 23, 2017 Rating: 5 All India Association of Chit Funds welcomes the Goods and Services Tax (GST) All India Association of Chit Funds welcomes the Goods an...

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