The Goods and Services Tax (GST) Council headed by Union Finance Minister Arun Jaitley met here today to review the implementation of new tax regime which came into effect on July 1. At its 22nd meeting, the Council, of which all states Finance Ministers are member, took several decisions to facilitate ease of doing business.
The Council raised the threshold limit for Composition Scheme to Rs 1 crore from the current Rs 75 lakh to ease tax filing for small traders. Under the Composition Scheme, traders have to pay a fixed tax rate between 1-5 per cent. The Council also allowed traders with turnover less than Rs 1.5 crore to file return quarterly.
Excerpts from Finance Minister Jaitley's press conference after 22nd GST Council meeting in Delhi-
# Substantial taxation comes from big players, if you look at GST's collection pattern.
# Service providers with turnover less than Rs 20 lakh are exempt from inter-state service.
# 90% of the assesses who have turnover less than Rs 1.5 Cr turnover to file quarterly returns.
# The limit for turnover in composition scheme raised from Rs.75 lakh to Rs. 1 crore.
# Recommendation on tax on AC restaurants within 2 weeks.
# Exporters’ refunds for July will be processed from October 10 and for August exports, from October 18.
# People with turnover of 1.5 crores or less, which cover 90 percent assesses, will file quarterly return instead of monthly returns.
# GST on 'Khakhra' reduced from 12% to 5%.
# Substantial taxation comes from big players, if you look at GST's collection pattern.
# Composition scheme has been relaxed, threshold now at Rs 1 cr from Rs 75 lakh.
# Traders will give 1% tax on turnover up to Rs 1 cr, manufacturers, 2%, and restaurants, 5%.
# Those who have up to Rs 1.5 cr turnover will file quarterly returns instead of monthly.
# Traders to pay 1%, manufacturers 2% and restaurants 5% under composition scheme.
# GST rates of 26 items were reviewed by the GST Council.
# GOM to re-look at 18% GST charge on AC restaurants with turnover more than Rs 1 crore.
# E-way bill has been experimentally rolled out in Karnataka. Will try to implement this India-wide by April next.
# 1% tax applicable on traders under composition scheme.
# GST on job works such as printing, handicraft reduced to 5%.
# GST on diesel engine parts and diesel pumps from reduced from 28% to 18%.
# GST on unbranded ayurveda medicines reduced from 12% to 5%: FM
# Man made yarn was taxed 18%, it has been put in 12% slab, will have effect on textiles.
