India News
Search Web Directory
News Home
GST Council meet: Exporters get virtual tax waiver, 27 items see tax cut, quarterly returns for over 90 pct of taxpayers now
Posted on 7th October 2017
The Goods and Services Tax (GST) Council on Friday approved a number of steps to alleviate the new regime-related pains of small businesses and exporters and suspended the implementation of the cumbersome e-way bill and reverse charge mechanisms till the end of the current financial year. While the tax rates on some 27 high-consumer-interest items have been reduced — exactly a month ago, it had cut the rates on 30 items — the council also resolved to revisit the complex taxation structure it imposed on restaurant business. The sweeping changes approved by the Centre-state council reflected the government’s appreciation of the enormity of problems the new tax, with its complicated design, multiple rates and intrusive rules have created for businesses.

While GST was meant to cool prices — the government had claimed that it would eventually bring down inflation by 2 percentage points — it has proved to be inflationary at least in the interim (retail inflation increased to 3.36% in August from 2.26% in July).

Finance minister Arun Jaitley said given the delays in refunding the taxes paid by exporters, an interim arrangements have been put in place by empowering both the central and state tax officials to reimburse exporters against their July GST payment by October 10 and against August taxes by October 18.

Significantly, while the government has so far been firm that pre-GST exemption system for exporters can’t continue in the GST regime, it now allowed exporters tax waiver till March 31, 2018.

Merchant exporters will be able to avail of exemption under advance-authorisation, EPCG and 100% EOU schemes till the end of this financial year. The facility is against payment of nominal tax of 0.1% by manufacturers in the supplies to merchants, so that the GST chain is uninterrupted. Exporters have been worried over the delayed refunds welcomed the changes, as these would help address their liquidity problems.

The turnover threshold for the benign composition scheme has been raised to Rs 1 crore from Rs 75 lakh earlier, which means lakhs more small businesses can now pay the normative taxes of 1% (traders) 2% (manufacturers) and restaurants (5%) and file the returns in a quarterly basis. Besides, units up to Rs 1.5 crore turnover have also been allowed to file quarterly — instead of monthly — returns, a move that would allow 90% of the non-composition GST registrants to shift to the easier system of filing returns every quarter.

Jaitley said a group of state finance ministers has been tasked with examining certain other proposals to reduce the taxpayers’ compliance burden: Whether to allow units with interstate sales to opt for composition scheme; whether exempt goods need to be counted for computing the composition-scheme turnover; whether the manufacturing units paying 2% tax on turnover be allowed input tax credit.

The group of minister, which will also review the tax structure for restaurants, would submit its report expeditiously in two weeks, Jaitley said. Sources said the council has taken an in-principle decision to tax restaurant services at 12%, ending the distinction between air-conditioned (currently taxed at 18%) and non-air-conditioned restaurants (12% tax at present). The question is whether lower tax could be without the benefit of input tax credit, most restaurants are found to not passing on the benefit of ITC availed to the customers.

An e-wallet system, a virtual currency meant for refund of taxes to exporters on the basis of past records or confirmed orders, would be introduced from next financial year. This would allow resumption of the tax refund system without creating hassles and working capital problems for exporters. Pratik Jain, leader, indirect tax, PwC, said : “Deferring reverse charge mechanism on purchases from unregistered dealer is a step in the right direction, which will avoid complex paperwork by purchasers. Exporters got a major relief by way of upfront exemption of GST on purchases till March 2018. Also for July and August, refunds are proposed to be given in a timely manner. Proposal of an e-wallet mechanism from April 2018 seems to be interesting but would entail significant IT changes.”

As regards the works contracts in the government sector, the GST rate has been reduced from 12% to 5% if the labour content in the contract is 75% or higher, but subject to the rider that there is no overflow of input tax credit as a result.

Other Latest News
FICCI seeks privatisation of public sector banks
Posted on 19th February 2018
The government should consider privatising public sector banks (PSBs) as over Rs 2.6 lakh crore capital infusion in the past eleven years has had limited impact in improving their health, and the move would also reduce drain on the exchequer, industry body Ficci said today. The suggestion comes in the backdrop of the $1.77 billion (about Rs 11,400 crore) scam in Punjab National Bank involving billionaire jeweller Nirav Modi.

Idea now gives unlimited calls, 1GB data at Rs 109; here are all benefits
Posted on 19th February 2018
Idea Cellular has introduced a new pack that offers 1GB data and unlimited calls at Rs 109 to combat the tariff war started by Reliance and later joined by other telcos including Airtel and Vodafone among others. The new Idea Rs 109 recharge pack comes with a validity of 14 days and benefits the customer with 1GB of data, unlimited local, national, and roaming calls, along with 100 SMSes per day.

Modi launches Nasscom's platform for skill development in 8 technologies
Posted on 19th February 2018
PM Narendra Modi today launched Nasscom's platform - FutureSkills - for skill development in eight varied technologies.

Modi launched the platform via video conference during the inaugural session of the World Congress on Information Technology (WCIT)-2018.

Axis Bank follows the trend, raises MCLR by 10 basis points to 8.4%
Posted on 19th February 2018
Axis Bank has raised its Marginal Cost of Funds based Lending Rates (MCLR) by ten basis points across the three and six month, one, two and three year categories with one-year MCLR now standing at 8.4 per cent.

The bank followed other private lenders like HDFC Bank and IndusInd Bank in increasing MCLR — indicating a trend.

Microsoft’s Bing to gain as Google kills ‘view image’ button
Posted on 19th February 2018
Following Google’s removal of the “view image” button from its image search results last week, several users will move to other browsers like Microsoft’s Bing and Startpage that allow download of high-resolution images with a right click, media reported. Google, after signing a multi-year global licensing deal with Getty Images, removed the “view image” button — a move set to curb the lifting of copyrighted images from its platform.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for GST Council meet: Exporters get virtual tax waiver, 27 items see tax cut, quarterly returns for over 90 pct of taxpayers now
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for GST Council meet: Exporters get virtual tax waiver, 27 items see tax cut, quarterly returns for over 90 pct of taxpayers now

Most Read News

DLF's Q3 net sales bookings soar 78% to Rs 480 crore

RIL to invest in mobile making unit at Tirupati

BSNL offers new prepaid plan with 1GB data per day, free calling for 6 months at this rate

India regain No. 1 spot in ICC ODI ranking and they are there to stay

Sebi to meet rating agencies on faster access to default data

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018
    All Rights Reserved
Privacy Statement