Skip to main content

GST panel to consult MSMEs in October end to ease tax rigour

By
GST panel to consult MSMEs in October end to ease tax rigour
Five-member ministerial panel set up by GST Council to meet MSME representatives on 29 October to seek views on how to make compliance under GST easierA five-member ministerial panel set up by the federal indirect tax body, the goods and services tax (GST) Council, will meet representatives of micro, small and medium enterprises (MSME) at its second meeting on 29 October to seek views on how to make compliance in the GST regime easier for them.

The panel tasked with suggesting ways of making the quarterly tax payment scheme for small businesses more attractive wants to consult SMEs to make its recommendations as broad based as possible before they are placed before the Council to take a decision at its meeting on 9 November.

The GST Council had at its last meeting on 6 October allowed firms with up to Rs1 crore annual sales to sign up for the quarterly payment scheme, up from the earlier Rs75 lakh and exempted inter-state service providers with sales up to Rs20 lakh from the need for GST registration. A similar relaxation is under consideration for inter-state sale of goods without registration if turnover is below Rs20 lakh.

“The issues small traders were facing in the GST regime have been taken care of by the relaxations already announced at the last Council meeting. A lot of MSMEs with sales up to Rs1.5 crore, who, in the earlier regime had enjoyed excise duty exemption, have come under GST because of the Rs20 lakh sales threshold for GST registration. We want to consult small manufacturers on the issues they face in the new tax regime,” a person privy to the discussions in the panel said, on the condition of anonymity. The panel, which also looks into the taxation of restaurants, met on Sunday.

The Council is taking extra care to resolve all the difficulties faced by the MSME sector because of its significant contribution to the economy and employment. According to data published by the ministry of MSMEs in 2011, the sector accounts for 33% of India’s manufacturing output and 36 million such enterprises employed more than 80 million people. Their contribution to the economy is believed to have gone up since.

The ministerial panel members are Assam finance minister Himanta Biswa Sarma, Bihar deputy chief minister Sushil Kumar Modi, Jammu and Kashmir finance minister Haseeb Drabu, Punjab finance minister Manpreet Singh Badal and Chhattisgarh commercial taxes minister Amar Agrawal
The Mint, New Delhi, 17th October 2017

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more