'Initiatives by GST Council will address exporters' issues'

'Initiatives by GST Council will address exporters' issues'

'Initiatives by GST Council will address exporters' issues'

GST council conveyed it to the government to issue refund cheques for exporters who had raised the issue that their working capital was locked up. "The government has utterly failed to address structural issues of GST reform through fair and transparent consultations", Congress spokesperson Randeep Singh Surjewalal told the media here at the party headquarters. So happens for the 18 per cent GST rate, which was split at 9 per cent Central GST and 9 per cent State GST.

The scheme allows small businesses, including eateries, to pay 1-5 per cent tax without having to deal with the three-stage filing process.

Tax rate on Poster Colour is reduced from 28 per cent to 18 per cent.

- Unbranded namkeen down to 5%.

Tax rate on Plastic waste, parings or scrap Is reduced from 12 per cent to 5 per cent. Sources said the council has taken an in-principle decision to tax restaurant services at 12%, ending the distinction between air-conditioned (currently taxed at 18%) and non-air-conditioned restaurants (12% tax at present). "The 28% slab would fall as per genuine and legitimate aspirations of the people in general and industry in particular", said the minister.

Arun Jaitely has confirmed that in the meeting it has been decided that SMEs with the total turnover of up to 1.5 crores will be allowed to file quarterly returns.

Union Minister for Chemicals and Fertiliser Ananth Kumar today said the input credit collected from traders under the Goods and Services Taxes (GST) would be deposited into the account of traders within a fortnight. With the threshold for eligibility raised to up to Rs 1 crore of turnover per annum from '75 lakh, almost 90 per cent of all tax assessees will now come under the compensation scheme.

State Commercial Taxes Department, which keeps a record of tax collection, said the drop is not expected to continue in the future.

- Restaurants will have to pay 5%.

The Composition Window will be reopened for the traders to migrate or register to the composition scheme. "The idea of a nominal 0.1% GST is innovative and the concept of e-wallet is a good move in the digital direction", said Siddhartha Rajagopal, executive director, TEXPROCIL.

The Federation of Indian Export Organisations had sought GST refund for exporters based on GSTR-1 (the return relating to supplies) and GSTR-3B (a summary of transactions).

Another difficulty was that the duty credit scrips such as MEIS was losing value due to its reduced usability as it could no longer be used to pay IGST / GST.

The refund they get will receive eventually, would become an offset through e-wallet. The Council desired that the "e-Wallet" solution should be made operational, wef, 1 April 2018. Small firms and independent professionals can now breathe easy.

Getting refunds on taxes paid on inputs that go into making any product is an integral part of the GST regime. This is an interim measure.

The Group of Ministers, under Sushil Modi, set up to look into GSTN glitches will also brief the Council on the portal's functioning, PTI reported quoting officials in the ministry.

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