India eases tax burden for smaller businesses

Randall Craig
October 7, 2017

In a slew of measures to provide relief to exporter hit hard by the implementation of Goods and Services Tax, the GST Council today chose to bring in an e-wallet facility after six months to speed up their refund claims, council member and Kerala Finance Minister Thomas Isaac said. After the day-long meeting, Jaitley said small businesses would be allowed to file tax returns once a quarter instead of every month.

The report also suggested a possible GST rate cut in the luxury goods category which now is in the 28 per cent tax bracket.

Implementation will begin on July 1 onward, the GST will replace 17 central and state taxes to unite the country as one market but has been facing starting trouble, Among all the challenges facing on the monthly filing of return and the glitches in the GST network portal.

The Council had in its previous meeting also made a decision to set up two committees to look into the problems being faced by exporters and the technical glitches in the GST IT network. The government is mulling to reduce tax slabs and tax rates to ease businesses.

The GST Council is expected to look at ways to provide relief to exporters in terms of faster refunds as well as compliance.

Rates on food items such as khakra, dried sliced mango, ICDS food packets, unbranded namkeen, and unbranded Ayurvedic medicine have been lowered to 5 per cent, as have rates of waste paper, plastic and rubber e-waste. Some major changes have been introduced in the GST regime.

It is very likely that the GST council will discuss the issues of four tax slabs.

The Federation of Indian Export Organisations (FIEO) had sought GST refund for exporters based on GSTR-1 (the return relating to supplies) and GSTR-3B (a summary of transactions).

The composition scheme has been expended to Rs 1 crore from the earlier Rs 75 lakh. E-way Bill should be levied only on inter-state sale having a value of more than Rs 1 lakh. "So 20 lakh more businesses have to file in the next six days", GoM Chairman and Bihar Deputy Chief Minister Sushil Modi said.

Director-general Datuk Seri T. Subromaniam said the latest amendments to the GST Act had been submitted to the Finance Ministry and are expected to be tabled in the Dewan Rakyat later this month.

The Finance Minister also stated that the tax refunds of July and August for exporters will be processed from October 10.

Other reports by Ligue1talk

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