Confederation of All India Traders (CAIT) has expressed serious concerns about the items imported from China. CAIT said that there is a huge amount of hawala business, which is why the Chinese goods are cheaper in the market and the government seems to have a great loss in deal of customs duty and tax.
CAIT Sunday urged the government to probe Chinese goods imported through hawala channels. CAIT, in a statement, also claimed that “such hawala money might be transferred to Pakistan for conducting terrorist activities”.
CAIT has demanded from the government t to start a high level enquiry at Indian ports in depth so the culprits should be arrested. There is a connivance with officials of Indian port somewhere in this.
CAIT said the cost of goods imported from China, is less its cost and duty and IGST. This leads to a huge loss of revenue to the government. IGST is paid at a very low cost and then material goes to the grey market, where it is sold at very competitive prices compared to Indian goods, as GST is paid on Indian content at whole amount.
If the goods are imported and the items written in the bills are matched, then we can see the difference between the two. Keeping this in mind, there is a need for very strict monitoring on goods imported from China on Indian ports.
If the Government raises the issue and is very vigilant that custom duty and IGST are charged at the actual value of the imported material, then the Chinese goods will be costlier than the Indian goods, which bear the full amount of GST.