GST Council updates: Some items get cheaper; big relief for exporters, small businesses
Oct 06, 10:35 PM (IST)
For the full list of revised rates on 27 goods and 12 services, click here.
Oct 06, 07:35 PM (IST)
* Exporters to get IGST relief for 6 months
* SMEs with annual turnover of Rs 1.5 crore will be allowed to file quarterly returns
* E-wallet gateway will be developed and introduced after six months
* Group of Ministers to decide on bringing down the rate for AC restaurants to 12 percent
* Reverse charge mechanism suspended till March 2018
Oct 06, 10:42 PM (IST)
The Prime Minister has just tweeted about the changes to the GST regime. Here’s a summary:
Good and Simple Tax (GST) becomes even simpler. Today’s recommendations will immensely help small and medium business.
I congratulate FM Arun Jaitley & his team for engaging with various stakeholders for extensive feedback which led to today's recommendations
Composition scheme has been made more attractive & other facilitation measures will make the GST even more people-friendly & effective.
GST is in line with our constant endeavour to ensure interests of our citizens are safeguarded & India’s economy grows.
Oct 06, 09:39 PM (IST)
For the full story on the decisions taken by the GST Council at today's meeting, click here.
Oct 06, 09:15 PM (IST)
The GST Council will next meet on November 9 and 10 in Guwahati.
Oct 06, 09:06 PM (IST)
In all, rates have been revised for 26 items including sliced mango (12 to 5%), khakra chapati (12% to 5%), ICDS food packages (5% from 18%), unbranded namkeen (5%), unbranded ayurvedic medicine (12 to 5%), plastic waste (18 to 5%), rubber waste (18 to 5%), paper waste (5 from 12%), man-made yarn (12%).
Oct 06, 08:46 PM (IST)
That's a wrap from the press conference. The big takeaway is relief for small businesses and exporters.
Oct 06, 08:43 PM (IST)
Jaitley says that petroleum products remain outside the ambit of GST.
Oct 06, 08:37 PM (IST)
Revenue secretary Hasmukh Adhia says that 90 percent of the taxpayers will file quarterly returns and pay tax every three months as well.
Oct 06, 08:34 PM (IST)
Jaitley says the GST rate on many job work items has been reduced to 5 percent from 12 percent.
Oct 06, 08:32 PM (IST)
Jaitley is now reading out the list of items on which GST rates have been reduced. Among them, the rate on unbranded ayurvedic medicines has been reduced to 5% from 12%.
Oct 06, 08:29 PM (IST)
A group of ministers has been set up to decide on turnover calculation mechanism and its report is due in two weeks.
Oct 06, 08:27 PM (IST)
The reverse charge mechanism has been suspended till March 2018.
Oct 06, 08:24 PM (IST)
Businesses with turnover above Rs 1.5 crore to continue filing monthly returns.
Oct 06, 08:22 PM (IST)
The composition scheme net has been widened to taxpayers with turnover up to Rs 1 crore from the earlier limit of Rs 75 lakh.
Oct 06, 08:21 PM (IST)
He adds that 2% tax will be applicable on manufacturing companies under composition scheme while 5% tax will be applicable on restaurants under the same scheme.
Oct 06, 08:19 PM (IST)
Jaitley says that 1% tax will be applicable on traders under the composition scheme.
Oct 06, 08:18 PM (IST)
The Council studied representations that compliance burden on small taxpayers was heavy, says Jaitley.
Oct 06, 08:13 PM (IST)
The government will deposit a notional amount as advance refund in the e-wallets for exporters.
Oct 06, 08:12 PM (IST)
For July exports, refund cheques will be processed by October 10 and for August exports, refund cheques will be processed by October 18.
Oct 06, 08:09 PM (IST)
Jaitley is now talking about the introduction of an e-wallet, which he says should become a reality by April 1 next year.
Oct 06, 08:08 PM (IST)
Electronic refund mechanism for exporters will take some time, says Jaitley.
Oct 06, 08:06 PM (IST)
Not possible to comment on pattern of GST collection as it is a transition phase, says the Finance Minister.
Oct 06, 08:04 PM (IST)
He says SMEs and exports were two key issues.
Oct 06, 08:03 PM (IST)
Jaitley says the Council took stock of the implementation of GST in the three months since it has been introduced.
Oct 06, 08:01 PM (IST)
The press conference has now begun.
Oct 06, 07:57 PM (IST)
Drabu says the Council has very consciously avoided giving exemptions under GST.
Oct 06, 07:49 PM (IST)
Haseeb Drabu J&K FM says reducing tax on AC restaurants to 12 percent with no ITC has been discussed.
Oct 06, 07:43 PM (IST)
Jammu and Kashmir Finance Minister Haseeb Drabusays there is a possibility that the GST Council may look at other modalities instead of e-wallet.
Oct 06, 07:41 PM (IST)
We're now hearing that the GST Council meeting has ended and Finance Minister Arun Jaitley may speak shortly.
Oct 06, 07:26 PM (IST)
Bihar deputy chief minister Sushil Kumar Modi says SMEs with annual turnover of Rs 1.5 crore will be allowed to file quarterly returns.
Oct 06, 07:19 PM (IST)
Yarn, clips and pins have been brought down to the 5 percent slab.
Oct 06, 07:17 PM (IST)
Kerala Finance Minister Thomas Isaac says the GST Council has in-principle decided to bring down the rate for AC restaurants to 12 percent and a Group of Ministers will decide on the mechanism.
Oct 06, 07:16 PM (IST)
Godinho says two decisions taken at the meeting will require amendments to the law and the Council will next meet in November in Guwahati.
Oct 06, 07:10 PM (IST)
GST of gas stove and consumer articles cut from the current 28 percent, says GST Council member Mauvin Godinho.
Oct 06, 07:09 PM (IST)
The Kerala Finance Minister says e-wallet gateway will be developed and introduced after six months.
Oct 06, 07:08 PM (IST)
Exporters to get IGST relief for 6 months, says Isaac.
Oct 06, 07:06 PM (IST)
Kerala Finance Minister Thomas Isaac says a large number of rate reductions have taken place, including in the 28 percent tax slab.
Oct 06, 07:00 PM (IST)
Sources are telling CNBC-TV18 that a group of ministers has been set up to examine key rate cut issues in restaurants.
Oct 06, 06:52 PM (IST)
The Andhra Pradesh Finance Minister says many states requested for quarterly returns filing for small businesses.
Oct 06, 06:41 PM (IST)
Meanwhile, SEBI has announced reforms for Mutual Funds. Track the latest here.
Oct 06, 06:28 PM (IST)
An exclusive from CNBC Awaaz, which reports that a PAN card will not be needed for jewellery purchases above Rs 50,000.
Oct 06, 06:18 PM (IST)
Sources also say that the GST rate on some handicraft items may be cut to 5 percent from 12 percent.
Oct 06, 06:11 PM (IST)
CNBC-TV18, quoting sources, says the GST Council has decided to roll out the e-way bill from April.
Oct 06, 06:03 PM (IST)
Telangana Finance Minister says yet to take a decision on reducing VAT on petrol and diesel.
Oct 06, 05:59 PM (IST)
The rate cuts, if announced today, will help boost household spending just in time for the pre-Diwali buying season.
Oct 06, 05:51 PM (IST)
Telangana Finance Minister says composition scheme threshold likely to be raised to Rs 1 crore to 1.5 crore; expect full consensus on it.
Oct 06, 05:49 PM (IST)
Among various challenges, small and medium businesses have been particularly hit due to higher compliance burden owing to complex monthly return filing and glitches in the information technology (IT) portal GST Network (GSTN).
Oct 06, 05:37 PM (IST)
“Businesses are getting affected by RCM. Registered taxpayers are not willing to take the burden of paying tax, while small or unregistered taxpayers are running out of business if registered dealers are not buying goods from them,” the official said.
“There could be a decision towards deferring RCM for at least some time,” the official added.
Oct 06, 05:24 PM (IST)
In addition, the Council may also defer the reverse charge mechanism (RCM), that has been especially bothering the small tax payers, the first official said.
Reverse charge is a mechanism where the recipient of the good or service will have to pay GST, which is otherwise paid by the supplier. The charge is applicable on a registered dealer, if he buys goods from a dealer not registered under GST. However, the receiver of the good is eligible for input tax credit, while the unregistered dealer is not.