GST rates on 27 items reduced; e-wallet by April 2018 for exporters: FM

Rverse charge mechanism for transactions between registered and unregistered businesses has been deferred till March 31, 2018

BS Web Team  |  New Delhi 

Jaitley
Union Finance Minister Arun Jaitley and Revenue Secretary Hasmukh Adhia (L) at the 22nd meeting of the Goods and Services Tax (GST) council, in New Delhi (Photo: PTI)

The Council, headed by Finance Minister on Friday made a series of deliberations on the new tax regime to provide relief to thousands of small firms and exporters.

The meeting was the 22nd of its kind, held a day after Jaitley, Prime Minister Narendra Modi and BJP President Amit Shah went into a huddle, reportedly to discuss the economy. 

Speaking to reporters, Jaitley said, "doesn't have exemptions, and hence there will be an for each with a notional advance refund amount. for exporters to be implemented by 1st April 2018, till then they can file on the rate of nominal 0.1%," said Jaitley.

Tax refunds of July and August for exporters to be processed from October 10, he said. rates of 27 items reviewed by the Council, including sliced dry mangoes, khakhra, unbranded namkeen, chapati have been been cut. to be implemented from April 1, said the finance minister. 

rate on some stationery items, diesel engine parts has been reduced to 18% from 28%.

Group of Ministers will study taxation regime for restaurants, especially on bifurcation on basis of AC & non-AC restaurants.

Jaitley said reverse charge mechanism for transactions between registered and unregistered businesses has been deferred till March 31, 2018.

Threshold for composition scheme in has been increased from Rs 75 lakh to Rs 1 crore so as to reduce compliance burden on medium and small taxpayers, Jaitley said.

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First Published: Fri, October 06 2017. 20:30 IST