Exporters will now have to pay nominal GST of 0.The 22nd meeting of GST Council was held at a time when the government is worried that confusion among traders and businesses over GST could have an impact on Lok Sabha elections in 2019.Services job works like zari, food items and printing items would attract 5 per cent tax instead of 12 per cent. In the previous regime, exporters were exempted from paying excise duty or VAT. The GoM, set up to look into reducing the tax burden on restaurants, will also consider allowing interstate trading to those registered under composition scheme. These businesses cover around 90 per cent of the tax base but pay around 5-6 per cent of the total GST.The system to electronically pay back refund to exporters is still not working.
Prime Minister Narendra Modi welcomed the steps announced on Friday and said the GST has become “even simpler” after GST Council’s recommendations.The Prime Minister said the new steps announced by the council are in line with the government’s constant endeavour to safeguard citizens’ interests and ensure India’s economy China Laminated PP woven Machine-made Bags grows.5 crore turnover, will still have to file monthly returns.During the meeting it was decided that small businesses with annual turn over of up to Rs 1. This credit will be used to pay Integrated Goods and Service Tax (IGST) and GST among others.The e-way bill system for smooth movement of trucks across state borders will be introduced in a staggered manner with from January 1, 2018, and will be rolled out nation-wide on April 1, 2018.
The GST Council decided to suspend reverse charge till March 31, 2018, which will benefit small businesses and substantially reduce compliance costs. The council also decided to raise the threshold to avail the composition scheme to turnover of Rs 1 crore against the present Rs 75 lakh. Reverse charge is a mechanism where the recipient of the goods and/or services is liable to pay GST instead of the supplier. “Now for SMEs with annual turnover of Rs 1. As a long-term solution for refunds, the GST Council decided to implement “e-wallet” from April 1, 2018. Also, salwar suit in a three-piece set has been classified as fabric and 5 per cent GST would be levied on it. The turnover threshold for J&K and Uttarakhand shall be Rs 1 crore. Government contracts involving high amount of labour will be levied 5 per cent GST instead of 12 per cent in order to contain cost of those prog.
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