Prime Minister Narendra Modi said that the Good and Service Tax (GST) has become simpler after the council''s recommendations and that it was well in line with the government''s constant endeavour to safeguard citizens'' interests and ensure the growth of India''s economy.
Prime Minister Modi took to Twitter on Friday and said, "GST is in line with our constant endeavour to ensure interests of our citizens are safeguarded & India''s economy grows. Composition scheme has been made more attractive and other facilitation measures will make the GST even more people-friendly and effective."
Prime Minister Modi also congratulated Union Finance Minister Arun Jaitley for engaging with various stakeholders for extensive feedback that led to the recommendations on the GST.
"I congratulate FM @arunjaitley & his team for engaging with various stakeholders for extensive feedback which led to today''s recommendations. Good and Simple Tax (GST) becomes even simpler. Today''s recommendations will immensely help small and medium business."
The Goods and Service Tax (GST) Council in its 22nd meeting, held in New Delhi on Friday at the Vigyan Bhawan, chaired by Union Finance Minister Arun Jaitley discussed the impact of the GST on trade and exporters.
The council raised the composition scheme threshold for businesses to Rs. 1 crore, which will allow them to pay a tax of 1 per cent to 5 per cent, without having to deal with a three-stage filing process.
The panel decided to give an option to taxpayers to avail the composition scheme if their turnover is less than Rs. 1 crore as against the previous limit of Rs. 75 lakh.
Under the composition scheme, the tax rate for traders of goods will be 1 per cent, 2 per cent for manufacturers and 5 per cent for restaurants and suppliers of food or drinks.
The GST Council also announced tax relief for exporters.
"The tax refunds to exports will start from October 10. There will be a nominal 0.1 per cent GST">GST applicable on exports," the finance minister announced, in a media briefing here.
The small and medium-sized enterprises (SMEs) with an annual turnover of Rs. 1.5 crore will be allowed to file quarterly returns.
"Small businesses will also have to file monthly returns for three months - July, August and September - and the switchover to quarterly filing will happen from the cycle starting October 1," Jaitley added.
"Every exporter will now get an e-wallet. In the e-wallet, there would be a notional amount for credit. The refund they will eventually get will be offset from that amount. The e-wallet will be introduced from April next year," Jaitley added.
He further said that the reverse charge mechanism for transactions between registered, unregistered business has been deferred till March 31, 2018. (ANI)