News Worms
News Worms

Three months on, GST now good for small traders

Three months on, GST now good for small traders

Jaitley informed that around 72 lakh taxpayers have been transferred to the GST network whereas 25-26 lakh are new taxpayers. Along with that, the threshold for composition scheme has been increased from ₹75 lakhs to ₹1 crore and it is going to impact a lot of traders. The small traders also got relief as they can file returns once in three months.

Moreover, the government had earlier mandated reverse charge mechanism, under which large entities pay taxes on behalf of their supplies from unregistered SMEs.

Unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra will now attract 5 per cent GST lower from 12 per cent. "The e-wallet option will be launched by 1st April", Jaitley said. There were some problems in the implementation which have now been addressed.

Finance minister Arun Jaitley said given the delays in refunding the taxes paid by exporters, an interim arrangements have been put in place by empowering both the central and state tax officials to reimburse exporters against their July GST payment by October 10 and against August taxes by October 18. The government will also deposit notional tax credits in the e-wallets that can be used to procure goods without actually incurring a tax burden.

The third issue being faced by the government is that taxpayers are missing the deadlines to file returns and so it can not accurately estimate how much revenue GST is yielding.

The Goods and Services Tax (GST) Council on Friday raised the threshold limit for Composition Scheme to Rs 1 crore and allowed quarterly return filing for traders having Rs 1.5 crore turnover to ease the tax filing for small traders.

Bringing significant relief to small and medium businesses and exporters, the Goods and Services Tax (GST) Council on Friday finalised a slew of relaxation measures.

Under the current GST structure, items are slotted under tax rates of 5, 12, 18 and 28 per cent.

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.

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. A technology company will be allotted the task to develop e-wallets for exporters. "Even the Chief Economic Advisor to this government had recommended the GST rate of 15 per cent to 15.25 per cent as the revenue neutral rate", he said. This group will give its report in two weeks.

Service providers can not opt for the composition scheme.

If GST on service is reduced to 10-percent, then scope of tax on service can be reduced from present 20 lakh per annum to five lakh per annum with those availing service worth more than five lakhs required to deposit GST directly to public-exchequer rather than routed through service-provider.


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