March 23, 2018

ECONOMY | GST is great but it could have been better!

08 October 2017, 01:04 | Lionel James

GoM reiterates no further extension for filing GSTR1 returns after October 10 deadline

GoM reiterates no further extension for filing GSTR1 returns after October 10 deadline

Addressing the National conclave on "GST, A Catalyst for Economic Growth and Ease of Doing Business" organised by the PHD Chambers of Commerce and Industry here, Kumar claimed that until Friday, 26.3 lakh new tax payers were added to the system.

So far over 15 lakh out of the 90 lakh registered businesses have opted for the composition scheme.

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. As many as 27 items including unbranded namkeen, unbranded ayurvedic medicines, handmade yarn, ICDS food packages, khakra chapati, waste obtained from rubber, plastic and paper have been brought under the 5 per cent slab. "The e-wallet option will be launched by 1st April", Jaitley said.

Jaitley said merchant exporters can export by paying a nominal GST of 0.1% till March 2018 that will shield them from lack of credit arising out of a late refund.

Exporters body FIEO's President Ganesh Kumar Gupta said that these initiatives will address the problem of the exporters particularly micro and small segments.

Taking stock of the problem being faced by the exporters with regards to liquidity their working capital get blocked, the GST Council has decided immediate disbursement of refunds for the month of July from October 10 and for August by October 18 onwards. A notional amount will be deposited in the wallet for refund purposes.

First proposed in 2006, it got the backing of most economists and was hailed as the biggest tax reform since independence, but despite the government's good intentions, many have slammed the authorities for creating a highly complex system that has added several layers of bureaucracy and hurt businesses.

Bangladesh, Myanmar to form 'working group' on refugee crisis
The violence, backed by radical Buddhist monks, has left scores of Rohingya villages torched and completely destroyed. He added he believed a "high level" United Nations team would be able to visit the region in "the next few days".

Briefing the media persons after 22nd meeting of GST Council here, Finance Minister Arun Jaitley said that the businesses with turnover of up to Rs 1.5 crore have been allowed to file quarterly returns instead of monthly filings.

The GoM, which Jaitley said will set up soon, will also examine if the Rs 1-crore turnover, which is the threshold for the composition scheme, should include revenue generated from the sale of exempted goods. The composition threshold limit under GST has been enhanced from 75 lakh rupees to one crore.

Facing severe criticism over the implementation of Goods and Services Tax, the government late Friday announced a slew of measures to ease the concerns of traders, exporters and small businesses while slashing the rates on 27 items of common consumption, including roti, khakra, namkeen, stationery, man-made yarn - with majority brought to five per cent category.

The Centre will use Friday's GST Council to push through and calm jittery businesses complaining about the new tax regime.

The GST council slashed the rates on 27 items of common consumption, including roti, khakra, namkeen, stationery, man-made yarn, with majority being brought under the 5% category. A technology company will be allotted the task of developing the e-wallets for exporters. This measure is expected to significantly reduce the compliance cost of small service providers.

To prevent cash blockage of exporters due to upfront payment of GST on inputs, etc, the Council approved two proposals -one for immediate relief and the other for providing long term support to exporters.

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