Trade body demands MoS to solve GST 36 (4) issue

Surat: Minister of State for MSME Pratap Sarangi was on visit to Surat last week during which a representation was made before him by Confederation of All India Traders (Gujarat) regarding grave issue of GST 36 (4).

Traders and manufacturers with less than Rs 5 crore turnover need to file return once every three months (Quarterly) while those with turnover above Rs. 5 crore need to file return every month. When those having above Rs. 5 crore turnover purchase something from those with turnover lesser than Rs. 5 crore, the suppliers need to wait for 3 months to get tax credit. For this reason, major manufacturers have stopped doing trades with smaller ones. They don’t release payment until credit is deposited. For this reason, small and medium scale manufacturers and traders are facing major financial difficulty, said Pramod Bhagat, head of Gujarat unity of CAIT.

The trade has shifted to bigger players, while smaller players are facing great difficulty to sustain their business, said a trader adding that buyer gets 10% credit only after 2A return shows credit.

what is gst 36(w)

Traders and manufacturers with less than Rs 5 crore turnover need to file return once every three months(Quarterly) while those with turnover above Rs. 5 crore need to file return every month. When those having above Rs. 5 crore turnover purchase something from those with turnover lesser than Rs. 5 crore, the suppliers need to wait for 3 months to get tax credit.