India Loosens Tax Rules for Small Businesses, Exporters
The meeting of the GST Council was advanced from late October to ensure fast resolution of concerns of exporters and small businesses.
Normally, it is the supplier’s obligation to collect taxes from the buyer and pay the government. “The industry needs time to get adjusted to the new system”, said Rao. Jaitley said input tax credit for exporters for July and August, estimated at $10 billion, would be refunded soon. In that e-wallet, a notional amount will be like an advance refund.
At present, Malaysians do not have to pay GST when they purchase products from e-commerce sites. “The e-wallet will be introduced from April next year”, Jaitley added. He had called for correcting “distorted” structure concerning textiles, making GST simpler and the processing of filing of returns easy.
This exemption that is being given to them, extending existing advanced authorisation, export promotion, capital goods, EPCG, and 100 per cent EOU, till March 31, 2018.
The scheme allows small businesses, including eateries, to pay 1-5 percent tax without having to deal with the three- stage filing process. So, the circle of the composition scheme has been increased.
Further, the facility of quarterly return filing will be available for businesses with an annual turnover of up to ₹1.5 crore.
“The GST Council has reached a consensus on increasing the composition threshold on companies with turnover of Rs.1 crore”, Andhra Pradesh Finance Minister Y. Ramakrishnudu said. “Composition scheme has been made more attractive and other facilitation measures will make the GST even more people-friendly and effective”.
SERVICES: 12 per cent tax will be levied on services such as state-run lotteries, non-AC hotels, business class air ticket, fertilisers and work contracts.
The reverse charge mechanism is quite irrational and since it has no impact on revenue, the same should be scrapped, the statement suggested.
All diagnostic kits and reagents, exercise books and notebooks, glasses for corrective spectacles, spoons, forks, fish knives, tongs, fixed speed diesel engines, two-way radio (walkie-talkie) used by defence, police and paramilitary forces etc., will come under the 12 per cent tax slab. The government estimated that only Rs 12,000 crore as valid.
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.