On Friday, the GST Council announced some major changes to the Goods and Services Tax Bill. Heavy rate cuts to various items, were announced with the motive of extending support to small businesses and exporters.
While addressing the media, Finance Minister Arun Jaitley announced that the GST being rolled out three months ago, it was time to assess its effects on various trades and also review the transition. According to reports from DNA, several announcements related to GST rate cuts were announced, much to the relief of several small businessmen and exporters.
Notably, after the day-long meeting, it was announced that to address the liquidity problem that exporters faced, even after three months of rolling the GST, the council announced six-month tax relief for the exporters. Also, though returns for the first two months, July and August have already been filed, it was announced that refunds would be made this month through cheques that would be issued on Oct. 10 and Oct. 18. And, for the rest of the fiscal, exporters can enjoy an exemption with the payment of only 0.1 percent as GST.
Arun Jaitley further announced the launch of an e-wallet for exporters, which is most likely to be launched on April 1, 2018.
In addition to the exporters, the GST council meeting also had good news in store for small and medium traders as post-meeting, it was announced that SMEs, which has a turnover of up to Rs 15 crore can file a quarterly return and not monthly return as it was previously announced. Notably, 90 percent of taxpayers will be benefitted by this change that was announced on Friday.
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. So, to ease this burden, it was announced by the GST council that the limit of the composite scheme would be increased to Rs 1 crore from the existing Rs 75 crore.