GST Council likely to speed up tax refunds, address network woes

Arun-Jaitley-GST-PTI

This could be altered to a quarterly exercise for businesses with a turnover of up to Rs 1.5 crore.

This will allow small businesses, including eateries, to pay 1-5 percent tax without having to deal with the three-stage filing process.

Officials with knowledge of the meeting and industry bodies said they expected the government to simplify the filing of tax returns under GST to ease the burden on smaller businesses.

Further, the facility of quarterly return filing will be available for businesses with an annual turnover of up to ₹1.5 crore.

Ahead of the forthcoming meeting of GST Council on 6th October, the Confederation of All India Traders (CAIT) has stressed the immediate need of removal of anomalies, disparities and contradictions of Goods and Services Tax (GST).

"The decision to introduce e-wallet will provide a permanent solution to the liquidity problem of the export sector", he said in a statement.

Under this, registered taxpayers had to pay tax on purchasing goods from non-registered suppliers. Similarly, GST rate on artificial jewellery may be cut to 5 per cent from 12 per cent and GST rate cut on unbranded cereals may be cut to 5 per cent from 12 per cent.

Composition scheme has been made more attractive & other facilitation measures will make the GST even more people-friendly & effective.

Exporters' tax refunds, which have been pending, will be cleared over the next two weeks - those for July by October 10, and for August by October 18. The council will then recommend some relaxation so that the working capital of exporters that is locked up in refunds is released. A Group of Ministers led by Sushil Modi to look into GSTN glitches will brief the GST Council on the status of portal's functioning.

The GST rate on some stationery items, diesel engine parts has also been reduced to 18 per cent from the earlier 28 per cent.

The Council is also expected to take up proposals regarding suspension of the reverse charge mechanism. It is likely that the government may increase the time limit for filing returns and also extend the deadline for registering with composition scheme till March, 2018. Jaitley has promised steps to boost economic growth back above 7 per cent and towards the levels economists say India requires to generate employment for the one million entering the workforce every month.

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