GST Council cut rates on 150-200 items to file single return

GST Council is expected to cut rates on 150-200 items from 28% slab. This change is set to be approved as well as simpler procedure for filing of tax returns for SMEs. As per meeting, you have to make single return filing form for small firms only.

Small Industries require some GST relief

When taxes being determined for over 1000 items prior to GST. They aim was to keep tax incidence as same to current level at time which ensure like revenue collection. Now, Arun Jaitley, Finance Minister says some of those will never have been put on 28% list and this will be prepared in upcoming council meeting. Even handmade goods, furniture items may benefit from this next slab reduction.

Government has been slowly bringing taxes down. Whole idea is as your revenue collections make safe we must cut it and that pattern in which council has been functioning. With introduction of new Indirect Tax called Goods and Services Tax (GST) on 1st July 2017 which put back multiple fall taxes levied by Central and State Governments.

Government official promised to change across other slabs as well.

GST council has addressed number of issues above all providing relief to small and medium enterprises (SMEs) and exporters fight with practical problems, delayed refunds and technical glitches on returns filing in GSTN. Also read Government cuts GST rates on 27 Items

GST council looks to be driving these changes to reduce tax and compliance burden for crores of small traders. To make new rules more manageable and help trade by reducing tax for goods and services that fall in highest slap of 28%. Similarly, changes that make for filing and compliance system is come out after government received feedback from businesses.

GST Council begins review of GST to remove problem

There will be review of norms to file GSTR-1, 2 and 3. Businesses have complained of problem in invoice while filing GSTR-2. It will be analysis whether matching of invoices would be follow in coming months. To make method simpler, small firms may be allowed to file only return form GSTR3B, doing away with filing of GSTR1, GSTR2 and GSTR3.

They also try to bring changes in SMEs singly tax return filing form in order to make procedure of return filing simpler. Bihar Finance Minster Sushil Modi has been set up to look into various issues pertaining to scheme for small taxpayers under GST. They will present paper to Council for changes in return filing process. However, taxpayers do not have to provide invoice level information in form.

Government extended time and date for filing return

Government has also extend time and date for filing return. For filling GSTR 2 form July date is extended till November 30 and GSTR-3 returns are extended by month of December 11. Currently, Businesses has to file returns in GSTR1, GSTR2 and GSTR3 and one annual return.

In order to reduce compliance burden, last month council approved to allow small tax payers with turnover less than 1.5 crore can file return quarterly instead of filing monthly returns. Apart from return filing process, daily use items rates such as cocoa products, geometry boxes will be shifted to lower tax slab.  See GST may have less tax slab rates says

And list is prepared by filament committee and changes in rates may not be restricted to moving non-sin goods out of 28 percent bracket. It can be other tax slabs that are 12 and 18 percent bracket. They said that SMEs have been hit by new indirect tax system and key steps will be taken to ease their challenges.

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