GST Council recommendations will immensely help SMEs: PM Modi

Isaac Cain
October 7, 2017

Today, at the 22nd meet of the GST council meet headed by finance minister Arun Jaitley. It may take another three months to get things streamlined.

"The tax refunds to exports will start from October 10". In the e-wallet, there would be a notional amount for credit.

The small and medium-sized enterprises (SMEs) with an annual turnover of Rs. 1.5 crore will be allowed to file quarterly returns.

CAIT national president BC Bhartia and secretary general Praveen Khandelwal hoped that the GST Council will seriously deliberate on the issues raised by the traders considering the situation of chaos and confusion prevailing among the trading community. "A Group of Ministers is being formed to look into it and they will look at it urgently and in two weeks will submit the report", said Jaitley.

Meanwhile, Bihar Deputy Chief Minister Sushil Modi has appealed to the council to consider removing some of the difficulties being faced by the small tax payer.

Jaitley said another area of discussion was centered around whether taxpayers in the composition scheme should be allowed to carry on inter-state sales.

Return to be filed once in the quarter not monthly basis.

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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.

However, as far as the composition scheme is concerned, service providers can not opt for it, other than restaurant related services; manufacturer of ice cream, pan masala, or tobacco; casual taxable person or a non- resident taxable person; and businesses which supply goods through an e-commerce operator. A technology company will be allotted the task to develop e-wallets for exporters. The CAIT has also called for smooth functioning of GSTN portal to provide ease of complying GST provisions for the traders.

"So far, over 15 lakh out of the 90 lakh registered businesses have opted for the composition scheme", he added.

The GST rate on some stationery items, diesel engine parts has also been reduced to 18 per cent from the earlier 28 per cent. The tax on zari work, unbranded ayurveda medicine has been reduced from 12 to 5 per cent.

But the traders will have to pay GST every month, he added. It was decided that immediately from October 10, July's and from October 18, August's refund would be processed and would be given to exporters through cheques.

The e-way bill will be rolled out between January 1 and April 1, 2018.

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