GST Council Okays Quarterly Filing of Return

Randall Padilla
October 8, 2017

The sweeping changes approved by the Centre-state council reflected the government's appreciation of the enormity of problems the new tax, with its complicated design, multiple rates and intrusive rules have created for businesses. "So far 15.5 lakh taxpayers have opted for composition scheme", Jaitley said.

The small and medium-sized enterprises (SMEs) with an annual turnover of Rs. 1.5 crore will be allowed to file quarterly returns. Similarly, the reverse charge mechanism for transactions between registered and unregistered businesses has been deferred till March 31, 2018. Moreover, tax rate on unbranded namkeen, unbranded ayurvedic medicine, e-waste, paper waste, rubber waste and plastic waste was reduced to 5 percent.

A meeting was scheduled on September 28, 2017, between Jaitley and industry representatives like Ficci, CII, Federation of Indian Export Oragnisations (FIEO) and FISM to discuss various issues faced by them related to GST.

Crisil Research believes that the government's move to relax IGST for six months and faster processing of refunds for exporters would address their liquidity issue and improve business efficiencies in the short term.

The GST Council also put its stamp on raising the limit of composition scheme to Rs 1 crore from current Rs 75 lakh for small businesses.

Also, the GST regime overburdened taxpayers who have less than Rs 1 crore turnovers due to a higher burden of compliance, even though the tax input is low.

Facing severe criticism over the implementation of Goods and Services Tax, the government late Friday announced a slew of measures to ease the concerns of traders, exporters and small businesses while slashing the rates on 27 items of common consumption, including roti, khakra, namkeen, stationery, man-made yarn - with a lot of them brought to five per cent category.

Along with relaxing the filing and taxation norms, the government also cut down the tax rate on 27 items.

The GST council slashed the rates on 27 items of common consumption, including roti, khakra, namkeen, stationery, man-made yarn, with majority being brought under the 5% category.

He also said that the refund for the months of July and August would be processed and cheques would be handed out to the exporters by October 10. By next April, the government will kick start a new digital e-wallet system for every exporter.

Prime Minister Modi is on a two-day visit to the state.

"The GST Council has already taken pro-active measures in rationalising GST rates in recent past and the trend would continue in future wherever the tax rate is deemed to be slightly on the higher side".

Friday's move, which comes almost 100 days after the indirect tax levy was rolled out on 1 July came in response to representions from India Inc over difficulties in filing returns and securing refunds. In the e-wallet, there would be a notional amount for credit. Service providers with less than 20 lakh revenue have be added to the GST exempt list.

Other reports by AllAboutTopnews

Discuss This Article

FOLLOW OUR NEWSPAPER