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Limit for GST composition scheme hiked to Rs 1 crore
07 Octubre 2017, 07:28 | Azura Castelo
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With the deadline for filing detailed GST returns for July nearing, the Sushil Modi-led Group of Ministers has asked the IT backbone provider GSTN and Infosys to send reminder text messages to two million businesses which are yet to submit their tax forms.
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.
Jaitley addressed the media after the meeting.
Of the 27 broad categories of items that saw a reduction in GST rates, at least eight were in segments where Gujarat is a dominant player.
Rate on many job work items reduced to 5% from 12%.
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Similarly, the tax rate on rotis and khakra was cut along with savouries and ayurvedic and homoeopathic medicines.
Different qualities of yarn whose duty has been reduced from 18% to 12% are: Synthetic filament yarns such as nylon, polyester and acrylic, all artificial filament yarn such as viscose rayon, Cuprammonium, Sewing thread of manmade staple fibres, yarn of manmade staple fibres and sewing thread of manmade filaments. The growth would touch 18% soon as had been the case before GST.
The Finance Minister announced that a concept paper on GST rate fitment has been approved by GST council.
It also raised the eligibility limit in terms of annual turnover to Rs one crore from the current Rs 75 lakh for the composition scheme, which allows a flat rate and easy compliance. Composition scheme is available only in absence of such credit and manufacturers get away by paying 2% tax without having to undertake compliance burden.
- Restaurants will have to pay 5%. "Since GST has no exemptions, for now, all exporters will be given an e-wallet". In that e-wallet, a notional amount will be like an advance refund.
The credit will be on the basis of past export performance and this can be used to meet the tax liability. E-wallet gateway will be developed and introduced after six months. "A professional tech firm will be appointed".
Jaitley, however, said, "For small traders the tax burden is low, but the compliance pressure is greater".
So it was decided that both Centre and State officials will be empowered to start processing refunds and give exporters cheques. This is an interim measure. Reports suggest that based on the committee report, the Council may recommend some relaxation for exporters so that their working capital which is locked up in refunds is released. "If you look at the GST pattern, the large players provide substantial taxation".
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