GST Diwali bonanza: Rates tweaked, relief for exporters and small traders
TIMESOFINDIA.COM|
Updated: Oct 06, 2017, 09.02 PM IST
NEW DELHI: The GST Council on Friday introduced a slew of reforms amid the festive season to woo traders and consumers.
In a relief to exporters, it was announced that returns for the month of July and August will be refunded through cheques from October 10 and October 18 respectively, Finance Minister Arun Jaitley said.
Moreover, an e-wallet will be created for each exporter by April 1, 2018 to carry forward the process.
The finance minister also said that the GST Council has agreed to allow SMEs with turnover of up to Rs 1.5 crore to file quarterly returns instead of monthly filings. About 90 per cent of the taxpayers will be benefited by this change, he added. One of the major compliance issues of the new tax system has been the cumbersome return filing process which requires traders to file three returns a month. Apart from dealing with the GSTN (GST Network) portal issues, filers have also complained of surging compliance charges.
The threshold for composition scheme in GST has been hiked from Rs 75 lakh to Rs 1 crore for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities. Under the composition scheme, a taxpayer is required to file summarized returns on a quarterly basis, instead of three monthly returns.
Jaitley said traders, manufacturers and restaurants will pay 1 per cent, 2 per cent and 5 per cent respectively under composition scheme. Service providers cannot opt for the composition scheme.
The GST Council also reduced rates for a bevy of goods and services. As many as 27 items including nnbranded namkeen, unbranded ayurvedic medicines, waste obtained from rubber, plastic and paper have been brought under the 5 per cent slab. Among services, job works like zari work, imitation jewellery and printing items have also been brought under this slab.
The roll out of e-way bill, another issue that has been under consideration for a long time, has been deferred to March 31, 2018.
The government has also revoked GST notification on gems and jewellery. A seperate notification in this regard will be issued later. Bringing forth some more reforms, the government has said that any person buying jewellery worth above Rs 50,000 will not have to furnish PAN card and Aadhaar Card details.
Also, entities dealing in gems, jewellery and other high value goods and has an annual turnover of over Rs 2 crore will no longer be under the purview of the money laundering act.
In a relief to exporters, it was announced that returns for the month of July and August will be refunded through cheques from October 10 and October 18 respectively, Finance Minister Arun Jaitley said.
Moreover, an e-wallet will be created for each exporter by April 1, 2018 to carry forward the process.
The finance minister also said that the GST Council has agreed to allow SMEs with turnover of up to Rs 1.5 crore to file quarterly returns instead of monthly filings. About 90 per cent of the taxpayers will be benefited by this change, he added. One of the major compliance issues of the new tax system has been the cumbersome return filing process which requires traders to file three returns a month. Apart from dealing with the GSTN (GST Network) portal issues, filers have also complained of surging compliance charges.
The threshold for composition scheme in GST has been hiked from Rs 75 lakh to Rs 1 crore for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities. Under the composition scheme, a taxpayer is required to file summarized returns on a quarterly basis, instead of three monthly returns.
Jaitley said traders, manufacturers and restaurants will pay 1 per cent, 2 per cent and 5 per cent respectively under composition scheme. Service providers cannot opt for the composition scheme.
The GST Council also reduced rates for a bevy of goods and services. As many as 27 items including nnbranded namkeen, unbranded ayurvedic medicines, waste obtained from rubber, plastic and paper have been brought under the 5 per cent slab. Among services, job works like zari work, imitation jewellery and printing items have also been brought under this slab.
The roll out of e-way bill, another issue that has been under consideration for a long time, has been deferred to March 31, 2018.
The government has also revoked GST notification on gems and jewellery. A seperate notification in this regard will be issued later. Bringing forth some more reforms, the government has said that any person buying jewellery worth above Rs 50,000 will not have to furnish PAN card and Aadhaar Card details.
Also, entities dealing in gems, jewellery and other high value goods and has an annual turnover of over Rs 2 crore will no longer be under the purview of the money laundering act.
