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Small traders set to get fresh GST relief

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Small traders set to get fresh GST relief
Panel wants increase in composition scheme threshold to Rs 1.5crore; reduction in rate and allowing interstate supply.A highlevel panel goods and services (GST) in its meeting Sunday recommended major changes in the new tax system that may compliance burden assessees and make the scheme more attractive.
It also proposed further the burden for restaurant The group of state ministers (GoM), led by Finance Minister Himanta Sarma, recommended that payers be allowed to file returns, even as those annual turnover of Rs1.5 crore had to pay the tax month, sources said.The GST Council in its meeting had decided allow taxpayers withaup to Rs 1.5 lakh to file quarterly payment and return filing.Additionally, the panel suggested a reduction in late filing fees to Rs 50 per day, against Rs 200 at present.
In a mega relief for small and medium enterprises, the panel recommended an overhaul of the composition scheme in the form of reducing rates, hiking the eligibility threshold to Rs 1.5 crore, from Rs 1 crore, and allowing interstate supply.It also proposed reducing rates toaflat one per cent for manufacturers and restaurants, against the current rates of two per cent and five per cent, respectively.
For traders, it recommended a lower rate of 0.5 per cent in the case of acumulative turnover of exempted and non-exempted goods, and one per cent for non-exempted goods.The composition scheme, which offers easier compliance, has received a lukewarm response, prompting the GST Council to give itarelook. “We have decided on a slew of measures to make the composition scheme attractive.It will be taken before the Council for a final decision,” said Sarma, after the meeting in New Delhi
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GoM recommends composition scheme overhaul
Scheme threshold to Rs 1 crore rates to 1% for restaurants, respectively traders; 0.5% when taking into of both exempted and 1% rate for taxable items supply for composition dealers allowing input tax credit for GST Council to take a call to also include job work filing for all GST taxpayers outside composition but monthly tax payment restaurants (AC/ nonAC) get input tax credit on rate of 12%
Even job work under manufacturing will be allowed in the composition scheme.
The other members of the panel are Bihar Deputy Chief Minister Sushil Modi, Jammu &Kashmir Finance Minister Haseeb Drabu, Punjab Finance Minister Manpreet Singh Badal, and Chhattisgarh Minister of Commercial Taxes Amar Agrawal.The recommendations will be placed before the GST Council in its meeting in Guwahati on November 10.
The GoM, constituted by the Council, has suggested allowing interstate sales for composition dealers.“The GST is one nation, one tax. Hence, dealers should be allowed to make interstate sales,” said Sarma.It also decided that restaurants outside the composition scheme —both AC and nonAC —must continue to get input tax credit even if their GST rate was reduced from 18 per cent to 12 per cent. “We feel that restaurants must continue to get input tax credit.
The rates in that case will be decided by the Council, considering the revenue implications,” said Sarma.However, the panel could not work out a consensus over allowing input tax credit for business to business transactions under the composition scheme.
The Council will decide the issue.To date, 1.5 million registered entities, amounting toasixth of 8.9 million GST assessees, have opted for the composition scheme so far. The Council, chaired by Union Finance Minister Arun Jaitley, had raised the eligibility threshold for the composition scheme to Rs 1 crore, from  Rs 75 lakh.
The new window will be available till March 31.A composition dealer needs to furnish one return, i.e., GSTR-4, onaquarterly basis, and an annual return, Form GSTR-9A, as against three forms every month by a normal taxpayer.Besides, there is no requirement of invoice wise details or Harmonised System of Nomenclature codes in their returns.The scheme is not available for manufacturers of tobacco and tobacco substitutes,paan masala, and ice cream
The Business Standard, New Delhi, 30th October 2017 

Comments

  1. GST Suvidha Provider8 November 2018 at 09:41

    The proposals will be set before the GST Council in its gathering in Guwahati on November The GoM, established by the Council, has recommended permitting interstate deals for sythesis dealers. The GST is one country, one expense. Subsequently, merchants ought to be permitted to make interstate deals, Sarma.It additionally chosen that eateries outside the organization conspire both AC and nonAC must keep on getting input impose credit regardless of whether their GST rate was diminished from 18 percent to 12 percent.

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