Karnataka Hosiery and Garment Association (KHGA) appealed to the state chief minister to allow that the tax rate in connection with the coming GST at the business to consumer level should be levied as inclusive of all taxes.

In a pre-budget memorandum to the chief minister, the association urged the government to look into the proposals and bring reform which will help the garment industry prosper and not control the growth.

Association said the government had proposed e-upass and e-sugam for the tax-paying and non-tax-paying dealer and the industry had accepted it. ‘Now we want to know when we are already filing e-upass, then why should we fill form 240 which has to be submitted by those dealers whose turnover exceeds rupee one crore and should be certified by chartered accountant.?’

The association said at the time of introduction of VAT, it was assured by the government that CST will phase down and become zero. But event after many years of introduction, CST still has to be filed. Also the government had assured the trade and industry, that auditing would not be required by commercial tax department of each firm, only random auditing would be done. ‘It has been observed that each and every dealer has to bring books of accounts for auditing every year’, the association regretted.