Nagpur : The Confederation of All India Traders (CAIT) - an apex body of trade associations and federations - has threatened to start a nationwide agitation against the central government for implementing the goods and service tax (GST) from April 1, 2010.

The nationwide agitation would begin from August 9, said secretary of CAIT Praveen Khandelwal. Nag Vidarbha Chamber of Commerce has also extended support to CAIT's strike.

As part of the nationwide agitation, CAIT would also submit memorandums to MPs and MLAs to oppose the GST. The Centre has proposed three different rates - 20% for goods, 16% for services and 12% for essential items - under GST. This tax would replace the excise and service tax at the Central level and VAT at the state level. Speaking to the media, Khandelwal claimed that if GST is imposed on traders across the country would suffer a huge financial loss. "In fact, it is not in favour of cottage industries and traders across the country," he alleged.

He further complained that small traders would not be able to maintain computerised accounts as mentioned in GST Act. So, they would be liable to be fined for not maintaining accounts as per GST, further reducing their income. When Value Added Tax (VAT) was levied, the Central government had said there would be one tax throughout the country, but the state governments did a complete Uturn on the issue, he claimed.

All states have moulded VAT slabs according to their whims, without consulting the traders. This has put a question mark on the proposed GST, which is likely to be introduced shortly, he added. According to Khandelwal, the Carriage and Goods Act is favourable only for big industries and foreign companies. CAIT also expressed concern over the Central government's decision to replace Food and Drugs Administration Act by Food Safety Act.