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GST Council meet: Exporters get tax relief for 6 months, threshold for composition scheme hiked

The threshold for composition scheme in Goods and Services Tax (GST) has been hiked from Rs 75 lakh to Rs 1 crore.

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Ahead of the festive season, the GST council on Friday announced relief for traders. Exporters have got tax relief for six months. Returns for the month of July and August will be refunded through cheques from October 10 and October 18 respectively, Finance Minister Arun Jaitley said. Finance Minister mentioned that there has been a blockage in credit of exporters which affects their cash liquidity.

Small and medium-sized enterprises (SMEs) with an annual turnover of Rs 1.5 crore will be allowed to file quarterly returns.

The finance minister said that the GST Council has agreed to allow SMEs with turnover of up to Rs 1.5 crore to file quarterly returns instead of monthly filings. About 90 per cent of the taxpayers will be benefited by this change, Arun Jaitley added. E-wallet gateway will be developed and introduced after six months. In-principle it has been agreed upon to bring down the rate for AC restaurants to 12 percent.  

The threshold for composition scheme in Goods and Services Tax (GST) has been hiked from Rs 75 lakh to Rs 1 crore, PTI reported. The decision was taken during the 22nd GST Council meeting, which was chaired by Union Finance Minister Arun Jaitley in New Delhi. 

 

 

Finance Minister said that Pattern of collection (of GST) is not clear after two months because it was a period of transition. Jaitley also announced that GST rates on 27 items have been reduced. 

 

 

Jaitley said the Council also decided to cut GST rate on 27 common use items. GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 per cent from 12 per cent, while the same on man-made yarn used in textile sector has been reduced to 12 per cent from 18 per cent.

Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent. GST on e-waste has been slashed to 5 per cent from 28 per cent. Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 per cent tax instead of 12 per cent. Job works like zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent.

Government contracts involving high amount of labour will be levied 5 per cent GST instead of 12 per cent in order to contain cost of those programmes, he said.

 


  
 

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