The GST Council has decided to raise the revenue threshold for availing the benefit of the composition scheme to Rs 1 crore from Rs 75 lakh. In a huge relief to SMEs, businesses with a turnover of up to Rs 1.5 crore have been allowed to file returns on a quarterly basis.
The GST Council has decided to raise the revenue threshold for availing the benefit of the composition scheme to Rs 1 crore from Rs 75 lakh.
In a huge relief to SMEs, businesses with a turnover of up to Rs 1.5 crore have been allowed to file returns on a quarterly basis. Earlier, they were required to file it monthly. Traders with a turnover of over Rs 1.5 crore will comply with GST norms as before where they will be filing returns monthly.
Finance Minister Arun Jaitley, who addressed the media after the GST Council concluded its meeting today, said that agenda of this meeting was to reduce compliance issues. He said the GST collections, which have come in for July and August, were also discussed in the meeting.
Stressing that GST rollout was in a transition phase, he said the reverse charge mechanism, under which a registered dealer buys goods from an unregistered dealer, has been deferred till March 31, 2018. He maintained that the process will be streamed going forward.
In another major announcement, the GST Council has also agreed to refund July’s tax assesses from October 10, while refund cheques will be doled out to August assesses from October 18. However, this is just an interim solution, added Jaitley, promising that a long-term workaround is around the corner.
Efforts will be made to ensure that the E-way bill, another contentious issue, will be initiated from April 1, 2018. Until the e-way mechanism is put in place, the government will deposit a notional amount as advance refund into e-wallets, said Jaitley. “Till then exporters will have to work with a 0.1 percent notional GST,” added Jaitley.
Addressing the complaint about a whole slew of goods and services which are taxed exorbitantly, Jaitley said about 27 items were revisited. Tax for items like sliced dried mango, khakhra and unbranded namkeen has been revised down to 5 percent.
Prime Minister Narendra Modi brainstormed for over three hours with Jaitley and BJP president Amit Shah on Thursday, taking stock of the current state of the Indian economy that is smarting under an untidy goods and services tax (GST) rollout and the lingering effects of demonetisation.
GST has a four broad slab structure – 5, 12, 18 and 28 percent – along with a cess on luxury and demerit goods such as tobacco, pan masala and aerated drinks.More to follow...