GST Council Declares Rates Tweaked Relief For Exporters, Small Traders:-On the 22nd Meeting of GST council today published a slew of cheer for Exporters and small traders , some of them who are facing working capital squeeze because of delayed in tax refund. The Finance Minister Mr. Arun Jaitley heads the council said that refunds for the exporters will be expedited. For July , the cheque of refund for exporters will processed by 10th October and for the August Exports it will be processed by October 18. Mr. Jaitley also announces that an E-Wallet will be set up by April, 2018 for refunding to the exporters. They will get an amount as an advance in their E-wallets & it will later offset with the tax refunds.
Exporters make complaint about the delayed in GST Tax refunds results in fund shortage and hurting normal operations. Anticipating that a staggering of Rs.65,000 crore will get fastend in GST refunds, exporters had adopted that the government fast track the process of refund & avoid the next steps of deterioration in the “liquidity situation”.
GST Council Declares Rates Tweaked Relief For Exporters, Small Traders
Exports are the important part of the Indian economy , that accounting nearly about 20% of the Gross Domestic Product (GDP).
Under the previous GST system the exporters didn’t pay any tax for import of inputs for the export purposes. But after the GST effect , they had to pay certain amount for integrated Goods & Services Tax or IGST. Which locked the working capital in absence of quick refund method.
Today GST Council hiked the limits of threshold of composition scheme to Rs 1 Crore, from 75 lakh. This move will content the compliance rules for the small businesses. Business with annual turnover up to 1 crore can now be opt out for the composition scheme which allows them to pay the tax at the flat rates without input the credits. The Main aim of optional composition scheme is to bring the simplicity and minimize the compliance cost for small businesses. By opting the pay for pay taxes under the Scheme, small businesses have to pay the tax at prescribed percentage of quarterly turnover instead of paying the taxes n normal rates.
The Tax rates under the composition scheme is 1 % for traders , 2% for Manufacturers & 5% for restaurants. Businesses which opt for the composition scheme have to file a single quarterly return with the details of total turnover.
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GST Council Meets: Eating Out is Now Get Cheaper
Easting out is now become cheaper with GST council in principal agree to minimize the GST Rates from 18% to 12 % . The Finance Minister Mr Jaitley declares that the group of ministers will relook the taxes on AC Restaurants.
He further said that on composition scheme tax payers with turnover up to the Rs 1.5 crore can now file the quarterly returns.
Jailtely said that the small businesses will be allowed to file the tax returns quarterly instead of monthly returns . The Compliance of SMEs in GST have been cut while the eligibility criteria of composition scheme has now raised to Rs 1 crore.
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