Published: Sat, October 07, 2017
Global Media | By Garry Long

Relief In Sight For SMEs And Exporters As GST Council Meets Today

Relief In Sight For SMEs And Exporters As GST Council Meets Today

Duty on food preparation distributed in containers to economically weaker sections under state or central government schemes is expected to be reduced from 18 per cent to 5 per cent. He also said duties would be cut on some products and the threshold for lower tax would be raised.

- GST on paper waste reduced to 5 per cent from 12 per cent.

As small and medium enterprises (SMEs) and exporters grapple with the implementation of the Goods and Services Tax (GST) and politicians critique the economic slowdown blaming demonetisation and GST implementation, the GST Council is set to meet on Friday.

It is very likely that the GST council will discuss the issues of four tax slabs. Reverse charge has been postponed till March 31 next year. With the economy sliding downwards, the government can longer neglect the impact of GST on the market.

Refunds of GST to the exporters will be fast-tracked. Changes to this effect would ensure that exporters get their working capital locked up in refunds released quickly.

Reports quoting sources said the GST Council has made a decision to relax the reporting requirement for gold purchases. The CAIT has also called for smooth functioning of GSTN portal to provide ease of complying GST provisions for the traders.

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The GST council has also announced constituting a 5 member committee which will provide its recommendations after reviewing rate of GST for restaurants and interstate sales transactions for composition assessee and exclusion of exempted goods from total turnover and ITC to manufactures opting composition scheme. Now it is Rs 75 lakh that could be raised to Rs 1-1.5 crore for micro, small and medium enterprises. Jaitley said 1 per cent will be applicable on traders under the composition scheme.

'The medium and small companies should remain in the tax net but we will relax their compliance burden, ' he said.

Addressing the media after 22nd GST Council meeting in Delhi, Jaitley said that the pattern of collection of GST is not clear after two months because it was a period of transition.

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.

Addressing concerns arising out of teething troubles in implementing the Goods and Services Tax (GST), he said his government was committed to removing the bottlenecks.

The changes listed above have been recommended by the GST Council.

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