A revamped GST without its glitches may take shape today
Dated New Delhi, October 6, 2017
NEW DELHI: A major revamp of the goods and services tax (GST), which came into force on July 1, will be on the agenda of the GST Council on Friday as part of efforts to address the grievances of small-scale industries, traders and exporters, officials said.
The package of measures expected to be taken up by the apex decision-making body may include an increase in the threshold limit for the composition scheme, a more liberal exemption limit, and a lower compliance burden with quarterly rather than monthly filing apart from steps to boost exports.
The council meeting on Friday could consider raising the threshold for the composition scheme to Rs 1-1.5 crore from Rs 75 lakh to aid micro, small and medium enterprises (MSME). Under the composition scheme, an entity pays a fixed, nominal rate to avoid GST-related paperwork.
While industry is pushing for raising the threshold to Rs 1.5 crore, the council will take into account concerns of the finance ministry and some states about revenue losses.
Small businesses such as traders, manufacturers and restaurants can pay tax at 1%, 2% and 5%, respectively. Businesses with a turnover of up to Rs 20 lakh are exempted from payment of tax. Higher thresholds will ease the compliance burden and also reduce the filing load on the system. Prior to the rollout of the GST, excise duty on turnover of up to Rs 1.5 crore had been exempted.