Relief In Sight For SMEs And Exporters As GST Council Meets Today

Relief In Sight For SMEs And Exporters As GST Council Meets Today

Relief In Sight For SMEs And Exporters As GST Council Meets Today

The Kerala minister said the Council was also looking at a few measures to address the liquidity issues being faced by exporters. The GST rates of 12 per cent and 18 per cent include both CGST (Central GST) and SGST (State GST). GST Council has also thought of bringing down tax rate on AC restaurants with no ITC from 18 per cent to 12 per cent. The refund for the month of July 2017 will be paid back to the merchants starting October 10th 2017 and the refund for August 2017 will be paid by cheque starting October 18th, 2017.

This exemption that is being given to them, extending existing advanced authorisation, export promotion, capital goods, EPCG, and 100 per cent EOU, till March 31, 2018.

On the Council's agenda at today's meeting is a relook at procedures for businesses and discussions on changes that need to be brought about based upon the learnings of the government and the feedback it has received in the three months since GST launch. Ajay Sahai, head of the Federation of Indian Export Organisation, told the news agency that he expected the government to allow its 25,000 small and medium-sized members to file tax returns quarterly.

According to the previous GST rates, spark-ignition reciprocating or rotary internal combustion piston engine, compression-ignition internal combustion piston engines (semi-diesel or diesel engines) and pumps for dispensing fuel or lubricants were under 28 per cent. The GST Council here approved quarterly filing of returns for businesses who registered themselves and with turnover upto 1.5 crore besides raising the threshold for composition scheme from Rs 75 lakh to Rs 1 crore.

Unbranded ayurvedic medicines will now attract 5% GST.

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While a mountain of bad loans has crimped bank lending to India's bigger companies, smaller firms have been hurt by a government move last November to stamp out "black money" - untaxed cash that oils many industries - and by GST, whose complex structure has baffled companies down the supply chain.

- Stones used in flooring, except marble and granite - will be now taxed at 18 per cent instead of 28 per cent.

Printing job work will now be taxed at 5%. It will be given a notional amount as advance refund.

Kerala Finance Minister Thomas Isaac said exporters will get IGST relief and e-wallet facility for six months.

Compliance burden of medium and small taxpayers in GST being cut; eligibility of composition scheme raised to Rs 1 crore. This rule shifts the liability to pay the tax on the buyer instead of than the seller. "We are relaxing their compliance burden", said Jaitley.

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