The Centre is preparing a host of incentives, including relief in input credit to big traders similar to exporters and incorporation of more services under the GST composition scheme.

The move comes as the industry has complained of being driven into unnecessary problems after imposition of the new indirect tax regime.

Sources said the fitment committee has been studying the additional services that can be brought under the composition scheme just as the restaurant business has been given.

Many services may be covered to benefit small businessmen, the sources added.

While enacting the GST, no benefit was given to service providers except those in the restaurant business, whether to be entitled to or opt for the composition scheme.

The GST Council on October 6 had decided that a group of ministers (GoM) would examine measures to make the composition scheme more attractive.

The Council has already increased the threshold under the composition scheme to Rs 1 crore from Rs 75 lakh to reduce compliance burden for smaller firms.

Besides, businesses with an annual turnover of up to Rs 1.5 crore could now file their returns on quarterly basis, instead of monthly returns prescribed before.

The GST-registered buyers from such small taxpayers would be eligible to avail input tax credit (ITC) on a monthly basis.

The government is also considering some relief to big traders similar to the one given to exporters on input tax credit, a source said, but declined to comment on the nature of concessions being thought about.

At the last meeting, the Council had provided major relief to exporters by way of upfront exemption of GST on purchases till March 2018.

For July and August, refunds are proposed to be given in a timely manner. The government has also proposed to introduce an E-wallet mechanism from April 2018.

The relief came after exporters complained of facing liquidity problems due to delay in refunds of taxes.

The next meeting of the GST Council, to be chaired by finance minister Arun Jaitley, would be held in Guwahati on November 10 where these decisions may be announced, sources said.

Revenue secretary Hasmukh Adhia on Sunday had said that GST rates needed a complete overhaul for which the fitment committee would take a decision as early as possible.

Other measures being considered is to see if some additional services can be brought under GST, the sources said.
This would offset any fall in revenue if the tax slab in restaurant is slashed or made uniform, the sources said. There has been severe criticism about the GST rate on restaurant, more so in social media, which finally led to the government agreeing to review it by an expert committee.

On October 6, the council had exempted from GST the goods transport agencies (GTAs) who provide services to an unregistered person. The government is also looking at which other service providers can be exempted from the goods and services tax if they deal with an unregistered person, the sources said.

The relief could also be given larger service prov-iders if the GST council is convinced that the problem is deeper and does not restrict itself to small goods transport agencies.

The goods and services tax, which was in the making for over a decade, was rolled out on July 1 this year.