Limit for GST composition scheme hiked to Rs 1 crore

PETALING JAYA Video-on-demand service iflix today said it had been GST-compliant since it first made its service available to Malaysian consumers

PETALING JAYA Video-on-demand service iflix today said it had been GST-compliant since it first made its service available to Malaysian consumers

This could be altered to a quarterly exercise for businesses with a turnover of up to Rs 1.5 crore. Three types of businesses come under this scheme - trading on which 1 per cent tax would be given, on manufacturing 2 per cent and on restaurant business 5 per cent.

He said that composition scheme limit has been increased from Rs 75 lakh to Rs 1 crore and added that 1% tax is applicable on traders under composition scheme. Businesses with a turnover of up to 15 million rupees can file quarterly returns, Jaitley announced. Also, there are reports which say that various states has proposed 3 month returns cycle for regular dealers.

Meanwhile, Bihar Deputy Chief Minister Sushil Modi has appealed to the members of the GST council to consider difficulties being faced by the small tax payers. Job works like zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent. EU lauds Modi's GST The European Union (EU) on Friday gave thumbs up to India's GST, saying the new tax regime would facilitate ease of doing business.

The government has also reduced tax rates on products such as unbranded savoury snacks, roti and unbranded ayurvedic and homeopathy medicines, to the lowest rate of five percent.

The scheme can not be opted by supplier of services other than restaurant related services; manufacturer of ice cream, pan masala, or tobacco; casual taxable person or a non- resident taxable person; and businesses which supply goods through an e-commerce operator.

President Ganesh Kumar Gupta said the refund of GST for July by October 10 will address the liquidity concerns of exporters.

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In the service sector, composition scheme is available only for one sector - restaurants. "The Council has also decided that each exporter will get an e-wallet in which a nominal sum will be deposited for tax credit purposes, which will be offset against the credit refund when it happens".

GST rate on man-made yarn reduced to 12% from 18%.

E-way bill, which allows for seamless movement of goods worth over Rs 50,000, is likely to be implemented from April 1, 2018.

The finance minister added that the pattern of collection [of the GST] is not clear after two months, because it was a period of transition.

The Council had in its previous meeting also made a decision to set up two committees to look into the problems being faced by exporters and the technical glitches in the GST IT network.

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