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GST simplified for SMEs, exporters

GST simplified for SMEs, exporters

Members examined the provisions and after detailed study we found that large companies/taxpayers contribute to 94-97 per cent of the taxes filed.

- A lot of items in stationery were at 28% now at 18%.

"The GST on khakra and unbranded namkeen has been reduced from 12 per cent to 5 per cent".

- GST on paper waste reduced to 5 per cent from 12 per cent. GST council is likely to assess the improvements in the GST Network's functioning.

Announcements like easier refund of input credit for exporters, promise of no enquiry into the tax matters of the previous VAT regime of indirect taxes and deferring of reverse charge mechanism for unregistered traders are expected after the meeting.

The council will try to implement the e-way bill by April 1, 2018.

For the small service providers, the GST council has recommended exemption from interstate service from RCM, provided the turnover of that particular merchant is below 20 lakhs.

Indian exporters were facing liquidity issues, Jaitley said, noting the government would start refunding exporters for July and August from October 10. The government may also bring down GST rate on several goods and services to stem the slowdown in the economy.

Faster refunds and relief in terms of compliance have been some of the key demands of exporters.

Steep drop expected for gas prices
Prices are expected to "slowly drift lower as inventories slowly improve", GasBuddy .com senior analyst Patrick DeHaan said. The average price of a gallon of regular-grade gasoline has fallen 7 cents nationally over the past two weeks.

He said with this, the department would meet its targeted GST collection of RM42bil for this year as part of its Key Performance Index.

FIEO had earlier said that micro and small exporters are particularly hit by GST as they have to borrow money to pay taxes.

The CAIT has demanded that if seller is not depositing tax, the onus should not be put on the buyer and since the government has issued GST no. after proper verification, the recovery of tax should be the duty of the government and not the traders.

This could be altered to a quarterly exercise for businesses with a turnover of up to Rs 1.5 crore. Now it is Rs 75 lakh that could be raised to Rs 1-1.5 crore for micro, small and medium enterprises.

Traders will pay 1%, manufacturers 2% and restaurants 5% under the composition scheme.

The Council also suspended till March a requirement that puts the onus of small businesses' tax compliance on big businesses that source products from them.

The GST Council gave relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and cut tax rates on various items.

Jaitley said a group of ministers would revisit the tax on AC restaurants.