GST Council eases tax filing norms for small traders

GST Council eases tax filing norms for small traders

GST Council eases tax filing norms for small traders

To bring simplicity and to reduce the compliance cost for the small taxpayers, the GST Council in its 22nd meeting has made a decision to allow taxpayers with Rs 1.5 crore to file quarterly returns and at the same time increased the threshold for composition scheme to Rs. 1 crore from the present Rs. 75 lakh.

Earlier Prime Minister Narendra Modi said that the government is open to hearing the pleas of sectors and acting accordingly.

The GST council will hold its 22nd meeting on Friday and is likely to consider to relaxing the return filing cycle for small and medium enterprises.

According to reports, the central government will use the GST Council meet on Friday to push through relief measures for SMEs and exporters which have been the worst hit by the GST. Changes to this effect would ensure that exporters get their working capital locked up in refunds released quickly.

"Future exports that they will do till March 31 will work through that exemption in which the nominal of 0.1 per cent will be given and after that we will work to establish the e-wallet by April 1, 2018".

The Chief Minister said that unlike other states, Goa had fully opened up to GST. "In the wake of current situation where traders are a depressed lot, such relief were much awaited and will change the code and colour of GST on a positive note".

Since large companies do not want additional compliance requirements for sourcing from MSMEs, these small entities stand to lose their business.

This could be altered to a quarterly exercise for businesses with a turnover of up to Rs 1.5 crore.

Businesses with annual turnover of up to Rs 1.5 crore are eligible to switch over to the quarterly schedule.

The objective of the optional composition scheme is to bring simplicity and to reduce the compliance cost for the small businesses.

Revenue Secretary Hasmukh Adhia however, clarified that this will roll out from October 1.

The scheme can not be opted by supplier of services 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.

"So far, over 15 lakh out of the 90 lakh registered businesses have opted for the composition scheme", he added. The third aspect the GoM will analyse is whether the rate of tax on restaurants needs to be reduced or should they not be allowed input tax credits.

Rates on food items such as khakra, dried sliced mango, ICDS food packets, unbranded namkeen, and unbranded Ayurvedic medicine have been lowered to 5 per cent, as have rates of waste paper, plastic and rubber e-waste.

Finance Minister Arun Jaitley said that After receiving GST return for July and August, the Committee have come to know of the experiences and transitions faced by traders of various kinds.

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