GST council says main cuts in taxes of various items. Also to support exporters and small businesses after new taxation system is launched. Since three months GST roll out returns have been filed for two months as well. So it is time to plan on its effect on various trades and transition. Here is complete list of changes in GST slabs.
Here are other things Jaitley announced in meeting
Besides this, Arun Jaitley made several others announcements in 22nd GST Council meeting. Also Read List of items that will get cheaper. Also see GST taxpayer division base between Center and States
- Businesses with turnover of up to Rs 1.5 crore will be allowed to file quarterly returns against monthly filings.
- Also, to avail of composition scheme businesses allows them to pay 1-5 per cent tax without going through formalities was raised to Rs 1 crore from current Rs 75 lakh.
- Tax refund for July exports will be process by October 10 and August exports refund will be processed by October 18 Oct. So they will operate under an exempted category to pay nominal 1.0 per cent GST.
- E-wallet for exporters will start from April 1, 2018.
- Exporters will get Integrated Goods and Services Tax relief
- E-way bill will be implemented from April 1
GST Council decided to cut GST rate on 27 items
This move comes after traders, small and medium enterprises had complained burden under new Goods and Services Tax (GST). To provide relief to them, council decided to cut GST rate on 27 common use items. Most of items of common consumption get to five percent category. Here is List of what we get cheaper.
GST Council has also form panel to consider GST rate for restaurants
- Man-made yarn used in textile sector is reduced to 12 per cent from 18 per cent.
- GST on unbranded namkeen, sliced dried mango, unbranded ayurvedic medicines will be cut from 12 per cent to 5 per cent.
- However, this scheme cannot opt by supplier of services other than restaurant, ice cream manufacture, pan masala, or tobacco. In addition, non-resident taxable person, taxable person and businesses which supply goods through an e-commerce operator.
- Those who opting for composition scheme can be claimed No input tax credit. Also, taxpayer can only make intra- state supply and cannot take inter-state goods supply.
- Tax on stationery items has been cut to 18 per cent from 28 per cent. Like stones used for flooring, diesel engine parts and pump parts. GST on e-waste has been cut to 5 per cent from 28 per cent.
- In kids school food packets given under Integrated Child Development Scheme will cut 5 per cent instead of 12 per cent. Like zari, imitation, food items and printing items will cut 5 per cent tax instead of 12 per cent.
- Government contracts involving high amount of labor will be levied 5 per cent GST instead of 12 per cent. Below Rs 20 Lakh revenue of service providers have exempted from iGST as well. For first time GST is landmark reform which turned into single market in 29 states in India.