GST Council Meet: Relief for exporters, small traders, says FM
New Delhi: Union Finance Minister Arun Jaitley on Friday said that as many as 26 items were reviewed by the Goods and Services Tax (GST) Council to ensure relief for exporters and small traders.
Addressing the media after the 22nd GST Council meeting here, FM Arun Jaitley said that the council has allowed quarterly return filing for traders having Rs 1.5 crore turnover to ease the tax filing for small traders.
Also, the threshold limit for Composition Scheme has been raised to Rs 1 crore which was earlier Rs 75 lakhs.
Major change in GST Rates:
- Petroleum products remain outside the ambit of GST.
- Unbranded ayurvedic medicines reduced from 12 per cent to 5 per cent.
- Rate on some stationery items, diesel engine parts reduced to 18 per cent from 28 per cent.
- Reduced GST rate on many job work items to 5 per cent from 12 per cent.
- GST on khakra and unbranded snacks reduced from 12 per cent to 5 per cent.
- Reduced GST rate on man-made yarn to 12 per cent from 18 per cent.
What else Arun Jaitley said?
- Traders to pay 1 per cent, manufacturers 2 per cent and restaurants 5 per cent tax under composition scheme.
- 90 per cent of the assesses who have turnover less than Rs 1.5 Cr turnover to file quarterly returns.
- Refund cheques for July exports, will be processed by 10 October and refund cheques for August exports, will be processed by 18 October.
- The limit for turnover in compensation scheme raised from Rs 75 lakh to Rs 1 crore.
- There has been blockage in credit of exporters which affects their cash liquidity.
- E-wallet for each exporter to be made and notional amount as advance refund will be given.
- This will be initiated on 1 April 2018.
- Pattern of collection (of GST) is not clear after two months because it was a period of transition.