Coimbatore traders petition District Collector for rollback of 18% GST on rent

Coimbatore traders petition District Collector for rollback of 18% GST on rent

Members of the Tamil Nadu Vanikar Sangangalin Peravai, a traders’ association in Coimbatore, have submitted a petition to the District Collector on Monday, urging a rollback of the 18% Goods and Services Tax (GST) levied under the Reverse Charge Mechanism on rents paid for commercial properties used for business purposes.

S. Lingam, president of the association, expressed concern over the mounting financial burden on small-scale retailers, who already face numerous taxes and regulatory fees, including municipal taxes, trade licenses, agricultural product sales permits, weight and measure certifications, and food safety registrations. While these charges were once manageable, Lingam noted that they have increased substantially, placing additional strain on business owners.

Although businesses with a turnover under ₹1 crore are eligible to claim a refund for the 18% GST paid, Mr. Lingam emphasised that in the current economic situation, a turnover of ₹1 crore is easily achievable for most traders. As a result, many small retailers would find it difficult to claim the refund.

The association has called for a reconsideration of the GST rate, arguing that the high tax is making it increasingly difficult for small-scale businesses to remain viable.