GST Council reduces tax rates on 27 goods, approves quarterly return filing

Lynne Hanson
October 7, 2017

The composition scheme has been expended to Rs 1 crore from the earlier Rs 75 lakh.

The scheme allows small businesses, including eateries, to pay 1-5 per cent tax without having to deal with the three-stage filing process.

With small businesses and traders complaining about the compliance burden the new Goods and Services Tax (GST) regime has put on them, the panel made a decision to give option to taxpayers to avail of the so-called Composition Scheme if their turnover is less than Rs 1 crore as against the previous limit of Rs 75 lakh. There are also a large number of taxpayers who have an annual turnover of Rs 1 crore or less.

Implementation will begin on July 1 onward, the GST will replace 17 central and state taxes to unite the country as one market but has been facing starting trouble, Among all the challenges facing on the monthly filing of return and the glitches in the GST network portal.

Reports quoting sources said the GST Council has chose to relax the reporting requirement for gold purchases.

By April 2018, e-wallets will be functional and the compliance burden would be relaxed for the small and medium businesses.

Parrikar, during a trader grievance redressal meet here, also said that Prime Minister Narendra Modi would resolve all pending issues related to the newly-introduced Goods and Services Tax in the coming future.

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"The increase in threshold under composition scheme to ₹1 crore would bring in many more small businesses within its ambit", Pratik Jain, Leader, Indirect Tax at PwC India said.

The government has also reduced tax rates on products such as unbranded savoury snacks, roti and unbranded ayurvedic and homeopathy medicines, to the lowest rate of five percent.

"The GST on khakra and unbranded namkeen has been reduced from 12 per cent to 5 per cent". "The last issue was that should input credit be available to those paying 2% tax on manufacturing under composition scheme".

Taking stock of the exporters' working capital that was getting blocked under GST affecting their cash liquidity, the Council has chose to disburse their refunds through cheques for July and August from October 10 and October 18 onwards respectively.

The reverse charge mechanism is quite irrational and since it has no impact on revenue, the same should be scrapped, the statement suggested.

"The collection pattern observed so far shows that a substantial portion of the tax is coming from the big players", Mr Jaitley said.

Other reports by TheDailyFarc

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