Traders' body Confederation of All India Traders (CAIT) on Friday urged Finance Minister Nirmala Sitharaman to defer the implementation of Rule 86B in GST, whereby businesses with over Rs 50 lakh monthly turnover will have to pay at least 1 percent of their GST liability in cash, terming it a "counterproductive" measure that will increase the traders' compliance burden.

Besides, the traders' body also urged Sitharaman to extend the last date for filing GST and 'Income Tax Audit' returns from December 31 to March 31, 2021.

CAIT Secretary General Praveen Khandelwal said that any amendment in any tax law should be implemented from the beginning of fiscal year instead of "amending again and again during the in-between period of the year".

Besides, the traders' body has also warned of strict action against alleged tax evaders but said that "everyone should not be subject to harsh provisions" as it is against the principle of natural justice.

CAIT Secretary General Praveen Khandelwal said that in light of the current scenario when domestic trade is disturbed due to repercussions of COVID-19 and traders are fighting for the survival of business, it is "strongly urged that the implementation of Rule 86 B may be deferred".

He observed that GST has again culminated into a "cobweb for traders and it is a general feeling that instead of a simple tax it is becoming a much-complicated tax system putting greater compliance burden on the traders".

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