Making GST a Good and Simple Tax, GST Council has announced big relief for small traders and exporters. He suggested that tax-payers with a turn-over of upto 1 crore 50 lakh rupees may be permitted to file return tri-monthly.
Krishna Byregowda, minister for agriculture and Karnataka's representative in the GST Council said the GSTN has come across 48 technical glitches till date, which have caused inconvenience to tax payers.
Prime Minister Modi also congratulated Union Finance Minister Arun Jaitley for engaging with various stakeholders for extensive feedback that led to the recommendations on the GST.
The GST rate on diesel engine parts will be reduced to 18 per cent. Small scale enterprises and exports were two major concerns among them.
"For small businesses the tax burden is low, but the compliance pressure is greater".
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. There are issues on tax slab, ITC, tax refund for MSMEs and Export Issues.
The Council chose to form a group of finance ministers (GOM) to discuss issues including, allowing inter-state traders under composition scheme, reducing GST on restaurants and exempting zero rated goods in calculation of turnover.
The good and services tax (GST), which came into effect on July 1, was created to replace more than a dozen state and national levies and transform India's $2 trillion economy into a single market for the first time.
The Chief Minister said that unlike other states, Goa had fully opened up to GST. The meeting is third since the implementation of the Goods and Services Tax in July this year. Similarly, GST rate on artificial jewellery may be cut to 5 per cent from 12 per cent and GST rate cut on unbranded cereals may be cut to 5 per cent from 12 per cent. Further, for exporters reeling under tight liquidity conditions due to tax refund claims aggregating to Rs 65,000 crore stuck with the government, the GST Council may take immediate steps to speed up the refunds or relax the working capital requirements, in addition to introducing e-wallet facility as well. "Since the formation of GoM, a lot of issues have been resolved, still some issues remain for which Infosys has been given a timeline to resolve", he said.