GST Meet: Four key reforms expected to small business enterprises

Oct 07, 2017, 01:09
GST Meet: Four key reforms expected to small business enterprises

Jari job work will now attract 5% GST, it was earlier 12%. Moreover, tax rate on unbranded namkeen, unbranded ayurvedic medicine, e-waste, paper waste, rubber waste, plastic waste was reduced to 5 per cent. PM Modi, Amit Shah and FM Arun Jaitely yesterday had a meeting ahead of PM Modi's visit to Gujarat on October 07 and 08.

Reverse charge mechanism for transactions between registered and unregistered businesses has been deferred till Mar 31, 2018.

Kerala Finance Minister Thomas Isaac said exporters will get IGST relief and e-wallet facility for six months.

There is a lot of confusion regarding The Goods and Services Tax (GST) in the market. The committee will submit its report ASAP. Based on that the Council is likely to recommend some relaxation for exporters so that their working capital which is locked up in refunds is released.

Many industrialists and exporters have been facing slowdown in their business operations while shifting to the GST regime.

Ajay Sahai, head of the Federation of Indian Export Organisation, said he expected the government to allow its 25,000 small and medium-sized members to file tax returns quarterly.

He also added that collections of GST returns for two months by far was also an experience. Exporters have also been exempted from furnishing bond and bank guarantee when they clear goods for export.

According to sources, the GST council will also discuss on quarterly filing of returns instead of monthly filing by exporters.

For small businesses, it was decided that establishments with 10 million rupee ($152, 686) turnover can deposit tax under a composition scheme, helping them to avoid tedious filing. This will allow small eateries to pay the 1-5 per cent tax without undertaking the three-stage filing process.

Both Bhartia and Khandelwal hoped that the GST Council will also focus on redressal of tax and procedural issues raised by CAIT.

"In general, Goa government has suggested to the council that the GST regime should be non-problematic to the smaller dealers, traders and entrepreneurs", he informed, expressing confidence that the recommendations of the state government to the GST Council would be honoured, and after that nearly all the GST-related problems here would be taken care of. One may expect the GST Council to formally decide on this. However, with the rollout of GST tax slab for various goods and services changed.