GST Council recommendations will immensely help SMEs: PM Modi

Arun-Jaitley-GST-PTI

We have always been GST-compliant, says iflix

Speaking in Patna yesterday, he suggested that tax payers with a turnover of up to 1 crore 50 lakh rupees may be permitted to file their returns on a tri-monthly basis.

The report also suggested a possible GST rate cut in the luxury goods category which now is in the 28 per cent tax bracket.

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.

The GST Council has also set up a Group of Ministers to look into various issues - including whether, when calculating the tax burden of a business, its total turnover should be considered or should exempted goods first be excluded.

Tax rate on man made yarn was reduced to 12 per cent from the current 18 per cent, which is expected to provide relief to the textile industry.

"I have told the GST council to review the problems being faced by traders and we are willing to make changes as per the suggestions", PM Modi had said in his speech at the Institute of Company Secretaries. It is believed that the higher thresholds will ease the compliance burden and also reduce the filing load on the system. Moreover, tax rate on unbranded namkeen, unbranded ayurvedic medicine, e-waste, paper waste, rubber waste, plastic waste was reduced to 5 per cent. GST Council has also thought of bringing down tax rate on AC restaurants with no ITC from 18 per cent to 12 per cent. Furthermore, under GST regime, there would be output taxes at the time of supply of output of the mines but at the same time the input tax cost incurred by the miners would be allowed as credit. Now it is Rs 75 lakh that could be raised to Rs 1-1.5 crore for micro, small and medium enterprises. On Wednesday in a rare move, Prime Minister Narendra Modi defended his government's record on economic management and pledged to reverse the slowdown ahead of 2019 federal elections. "Procedural reliefs will not compensate for messing with the basic architecture of GST by Modi Govt", Surjewala said.

The Finance Minister also stated that the tax refunds of July and August for exporters will be processed from October 10. The issues are being resolved on priority, he said. These collections will not be the complete picture as these two months were early transitional phase.

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