GST norms eased for small traders
GST on 27 items, including unbranded namkeen, slashed
After small traders raised concerns by about the impact of GST on their business, the GST Council on Friday allowed them to file returns and pay taxes once in three months as against the current monthly filing schedule.
Businesses with annual turnover of up to `1.5 crore are eligible to switch over to the quarterly schedule. The new schedule will be applicable from October 1.
“Compliance burden of medium and small taxpayers in GST is being reduced,” finance minister Arun Jaitley said.
Businesses having `1.5 crore turnover make up 90 per cent of the taxpayer base but contribute only six per cent of tax.
The Council has increased the businesses with a turnover limit opting for the composition scheme to `1 crore from the current `75 lakh. The council slashed tax on 27 items, including unbranded Aurvedic medicines.
The GST Council on Friday slashed GST rate on 27 common use items and set up a ministerial panel to consider bring down tax on AC restaurants from the current 18 per cent to 12 per cent. The panel would submit its report in 14 days.
GST on unbranded namkeen, unbranded Ayurvedic medicine, sliced dried mango and khakra has been cut to 5 per cent from 12 per cent, while the same on man-made yarn used in textile sector has been reduced to 12 per cent from 18 per cent.
Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent.
GST on e-waste has been cut to 5 per cent from 28 per cent. Food packets given to school kids under ICDS will attract 5 per cent tax instead of 12 per cent.
Job works like zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent. Government contracts involving high amount of labour will be levied 5 per cent GST instead of 12 per cent.
Addressing the delay in GST refunds to exporters, Union finance minister Arun Jaitley said they will operate under an exempted category paying a nominal 0.1 per cent GST.
From April 1, the finance minister said the council would launch an e-wallet facil- ity for the exporters to provide liquidity.
The exporters will get refunds for the tax paid by them on exports during July and August by October 18.
Though the Council has increased the turnover limit for composition scheme, service providers, except eateries, cannot opt for it.
The scheme cannot be opted by supplier of services other than restaurant related services; manufacturer of ice cream, pan masala, or tobacco; casual taxable person or a nonresident taxable person; and businesses which supply goods through an e-commerce operator.
No input tax credit can be claimed by those opting for composition scheme. Apart from this, the taxpayer can only make intra-state supply (sell in the same state) and cannot undertake inter-state supply of goods.