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GST Council meet as it happened: Exemption for exporters till 31 March, says Arun Jaitley

Many companies also want the government to increase the size of turnover imposed before they must start filing returns.

FP Staff October 06, 2017 20:27:13 IST
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GST Council meet as it happened: Exemption for exporters till 31 March, says Arun Jaitley

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LIVE NEWS and UPDATES

Oct 06, 2017 - 20:42 (IST)

Switchover to quarterly filing will start from 1 October

Finance Minister Arun Jaitley clarifies that 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 1 October.

Oct 06, 2017 - 20:39 (IST)

Oct 06, 2017 - 20:37 (IST)

Khakra, diesel engine parts to become cheaper


Finance Minister Arun Jaitley says GST on khakra and unbranded namkeen has been reduced from 12 percent to 5 percent. Tax on zari work, unbranded ayurveda medicine has been reduced from 12 to 5 percent. GST rate on many job work items reduced from 12 percent to 5 percent. GST rate on some stationery items, diesel engine parts also reduced to 18 percent from the earlier 28 percent.

Oct 06, 2017 - 20:35 (IST)

GoM to relook tax on AC restaurants

Finance Minister Arun Jaitley announces that a group of ministers will relook tax on AC restaurants. Eating out is set to become cheaper with the GST council in-principle agreeing to reduce the GST rate from the current 18 percent to 12 percent. The GoM will submit its report in 14 days

Oct 06, 2017 - 20:32 (IST)

Good news for exporters and small units

Measures announced by Union finance minister Arun Jaitley to offer relief for exporters by assuring immediate refunds for July exports and making a provision to offer e-wallets or refund by 1 April next year are positive steps that will improve sentiments. Like this, giving relief to small companies with turn over less than Rs1.5 crore by letting them file returns quarterly too will ease the compliance burden of this segment. Above Rs1.5 crore turn over, companies need to still file monthly returns. On the whole, the GST council meeting today appears more about easing the process rather than revising the tax rates. However, at the presser after the meeting, Jaitley said the GST council has cut the tax rates for a number of items such as certain packed food items and medicines. Also, the GST council will consider reducing the tax burden to certain segments such as restaurants, the FM said. One needs to see the details to understand the full impact of these revisions. 

Oct 06, 2017 - 20:29 (IST)

No reverse charge mechanism for transactions between registered, unregistered business till March-end 

Finance Minister Arun Jaitley says reverse charge mechanism for transactions between registered, unregistered business deferred till 31 March 2018.

Oct 06, 2017 - 20:26 (IST)

Oct 06, 2017 - 20:24 (IST)

2% tax applicable on manufacturing firms

Finance Minister Arun Jaitley says 2 percent tax applicable on manufacturing firms under composition scheme, 5 percent tax applicable on restaurant business under composition scheme.

Oct 06, 2017 - 20:18 (IST)

Compliance burden on small taxpayers was heavy, says Arun Jaitley

Finance Minister Arun Jaitley says studied representations that compliance burden on small taxpayers was heavy. Composition scheme net has been widened to taxpayers with turnover up to Rs 1 crore, says Jaitley. The finance minister says 1 percent tax applicable on traders under compositie scheme.

Oct 06, 2017 - 20:16 (IST)

Every exporter will now get an e-wallet, says Jaitley

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.  

The all-powerful GST Council is meeting on Friday amid rising clamour for changes in the new tax regime that has inflicted considerable pain on the small and medium enterprises.

The 22nd meeting of the council comes soon after Prime Minister Narendra Modi, BJP president Amit Shah and Finance Minister Arun Jaitley held an emergency meeting on Thursday, where the topic of discussion was reportedly the state of the economy and the ways to affect a course correction.

Small and medium-sized enterprises, crucial to Modi’s plans to create millions of more jobs, have been hurt by a massive tax overhaul launched in July that added layers of extra bureaucracy for firms and hit exports.

Finance Minister Arun Jaitley is now chairing the meeting of the council. Officials with knowledge of the meeting and industry bodies told Reuters that they expected the government to simplify the filing of tax returns under GST to ease the burden on smaller businesses.

Many companies also want the government to increase the size of turnover imposed before they must start filing returns. Ajay Sahai, head of the Federation of Indian Export Organisation, told the news agency that he expected the government to allow its 25,000 small and medium-sized members to file tax returns quarterly.

However, it is not only the MSMEs that will get a hand-holding. Read here about the four key steps the GST Council is likely to take on Friday.

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