12 decisions taken by GST Council for Small and Medium Enterprises October 11, 2017
The GST Council, in its 22nd Meeting which was held today in the national capital under Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses:- Composition Scheme has been extended to taxpayers having annual aggregate turnover of up to Rs. 1 crore.
- Under composite scheme traders, restaurants & manufacturers will pay 1% , 5% & 2% respectively.
- A Group of Ministers (GoM) will be constituted soon to examine measures to make the composition scheme more attractive.
- Quarterly returns for taxpayers with annual turnover less than ?1.5 crores; Tax also to be paid on Quarterly basis.
- This threshold of turnover for special category States, except J & K and Uttarakhand, has been increased to Rs. 75 lacs from Rs. 50 lacs.
- GST Council has considered the implementation experience of the last 3 months & gave relief to small traders in the GST.
- The Current turnover threshold limit under the Composition Scheme was of Rs. 75 lacs which has now been raised to Rs. 1 Crore.
- Composition Scheme has been extended to taxpayers having annual aggregate turnover of up to Rs. 1 crore.
- E-way bill provisions deferred till April 2018;
- Reverse charge to be abolished till 31 March
- Within the next 4 days i.e. by 10.10.2017 the held-up refund of IGST paid on goods exported outside India in July would begin to be paid.
- The August backlog would get cleared from 18.10.2017 and refunds for subsequent months would be handled expeditiously.
- Other refunds of IGST paid on supplies to SEZs and of inputs taxes on exports under Bond/LUT, shall be processed from 18.10.2017 onwards.
- Exporters have been exempted from furnishing Bond and Bank Guarantee when they clear goods for export.
- Immediate relief to be given by extending the Advance Authorization / EPCG/ 100% EOU schemes to sourcing inputs 4m abroad & domestic suppliers
- Merchant exporters will now have to pay nominal GST of 0.1% for procuring goods from domestic suppliers for export.
- The permanent solution to cash blockage is that of “e-Wallet” which would be credited with a notional amount as if it is an advance refund.
- E wallet shall be used for advance refund. This would help exporters in furthering their business.
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