New Delhi: The Centre has made quite a bit of modifications to the Goods and Services Tax (GST) in order to provide relief to small & medium businesses and exporters — both facing difficulties because of some complexities in the three-month-old national indirect tax — and cut rates on as many as 27 common use items.
It is worthwhile mentioning that the GST Council raised the turnover threshold for a composition scheme from Rs 75 lakh to Rs 1 crore. The scheme allows traders to pay 1 to 5 per cent tax without going through tedious formalities.
Furthermore, exporters will start getting refunds of their input credit for July from October 10, and for August from 18th of this month. Exporters will have e-wallets from April 1, 2018, for refunds.
The announcements come two days after PM Modi said that the government will graciously accept criticism on the economic front, and will review GST procedures and remove all bottlenecks.
GST rates on unbranded medicines have also been reduced from 12 per cent to 5 per cent.
The Finance Minister said, the GST Council has formed a Group of state Finance Ministers to look into other issues. The Council also constituted a panel to consider rationalising GST rate for restaurants.
Last Saturday, RSS chief Mohan Bhagwat had asked the government to not allow informal sectors such as small and medium enterprises, self-employing cottage industries, and agriculture to suffer.