Union Commerce Minister Nirmala Sitharaman on Sunday assured traders that GST will have no aggregate impact on small traders and businessmen as the government has worked out revenue neutral rates.

Revenue neutrality is a critical parameter in deciding the rates under GST and to prevent negative impact on the trade, she said while addressing traders at a meeting to discuss GST and related issues here.

The proposed uniform tax rates under GST would not only be lower than previously but also help prevent corruption and ensure better compliance from the taxpayers, she added.

Sitharaman assured the members of various trade associations that their concern and grievances will be taken up with the GST Council. She will also recommend for a review three months after GST implementation.

She clarified that there would be no penalty for non-filing of returns for small and medium businessmen for three months. Also, wrong entries won’t attract any penalty as those can be corrected later without any worry.

She also elaborated various steps to help the traders and business men through associations of chartered accountants and cost accountants and other industry bodies for smooth GST transition.

Earlier, Sitharaman thanked the Tamil Nadu government for passing the GST Bill in the Assembly recently.