The GST council today announced major cuts in taxes of various items and announced
various measures to support exporters and small businesses.
“It’s almost three months since GST roll out..returns have been filed for first two months as well. So it was a time to deliberate on its effect on various trades and the transition,”
Finance Minister Arun Jaitley said in a press briefing after the meeting of GST Council.
Keeping in view of the liquidity problem being faced by the exporters, the Council has
decided to immediately start refund process for the month of July by 10th October while
exporters can get refund of August by 18th October.
“As a long term solution, an e-wallet will be created for every exporter where a notional
amount will be given in advance…the refund will be offset later against that amount,”
The e-wallet option will be launched by 1st April, Jaitley added.
For small businesses, the it has been decided to increase the limit of composition scheme
to Rs 1 crore. So now the small business can now file returns on a quarterly basis. This,
Jaitley said, has been done to increase compliance. Under this, resturant businesses will
pay GST at 5% rate, traders will pay 1% while manufacturing composition will be 2%.
Jaitley also revealed that about 72 lakh taxpayers have been migrated to the GST system while 25-26 lakh are new taxpayers under the new taxation system.
He said that a majority of them have less than Rs 1 crore of turnover.
Meanwhile, the FM said that the GST Council has decided to revise tax of many items including sliced mango (12 to 5%), khakra chapati (12 to 5%), ICDS food packages (5 from 18%), unbranded namkeen (5%), unbranded ayurvedi medicine (12 to 5%), plastice waster (18 to 5%), rubber waste (18 to 5%), paper waste (5 from 12%), man made yard (12%) etc.
In total, rates have been revised for 27 items. Service providers with revenue below Rs 20 lakh have been exempted from iGST as well.
GST , which was launched in July, is a landmark reform which turned India’s 29 states into a single market for the first time.
But small and medium-sized enterprises, crucial to Prime Minister Narendra Modi’s plans to create millions more of jobs, have been hurt by the massive tax overhaul that added layers of extra bureaucracy for firms and hit exports.
- Businesses with annual turnover of upto INR 1.5 Crores
- Quarterly filing of GSTR 1, 2 and 3 along with the payment of tax from 3rd Quarter of the Financial Year, i.e October to December 2017. GSTR 1,2 and 3 are to be filed monthly for the months of July, August and September. Till December, monthly filing of GSTR 3B is also required.
- Need not pay GST at the time of receipt of advances for supply of goods
- Service providers:
- Exemption from GST Registration if the aggregate turnover is less than INR 20 Lacs (INR 10 Lacs in special category state except J&K) even if making inter-state supplies of services
- TDS/TCS provisions postponed till 31st March 2018
- Services provided by a GTA to unregistered persons exempted from GST
- Composition scheme:
- Eligibility raised to INR 1 crore except for special category state (Except J&K and Uttarakhand), which is increased to INR 75 Lacs from INR 50 Lacs
- Businesses providing exempted services now eligible for composition scheme
- Reverse charge mechanism applicable for purchases from unregistered dealers shall be suspended till 31st March 2018
- E-way bill system shall be rolled out nationwide from 1st April, 2018
- Last date for filling GSTR-4 for 1st Quarter shall be extended to 15th November, 2017
- Last date for filling GSTR-6 by ISD for the month of July, August and September, 2017 shall be extended to 15th November 2017
Source : Economic Times / Press Release
VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.
Advise for contacting VidyaSunil & Associates;
E Mail ID : email@example.com
Cell No. : +91 9739834819