A day after the all powerful Goods and Services Tax (GST) Council decided to cut tax rates and simplification of return filing process, the industry body, Confederation of Indian Industry (CII) has said this decision will increase the compliance rate and add to revenue buoyancy. It added that this will greatly benefit trade and industry. It also said that the government and GST Council have been responsive and proactive to the requirements of trade and industry since the very roll out of GST, which has made its implementation the shortest period of adjustment as compared to other countries.
The industry chamber said raising the limit for composition scheme from Rs 1 crore to Rs 1.5 crore, permitting composition dealers to supply services (other than restaurants) for up to a value not exceeding 10% of turnover in preceding financial year or up to Rs 5 lakh and other decisions shall particularly benefit the SME sector. GST Council also allowed businesses with turnover of up to Rs 5 crore to file quarterly returns -- a move which will benefit 93% of the GST registered taxpayers. However, they will have to pay taxes monthly. So far, businesses with turnover of up to Rs 1.5 crore were permitted to file returns quarterly.
Meanwhile, the GST council in its 28th meeting gave approval to cut tax rates on several products. GST rates on articles including consumer durables like smaller television sets, refrigerators, washing machines, paints and varnishes, lithium ion batteries, and more were brought down from 28% to 18%. The tax council rationalised rates on several other items too. The GST Council also exempted sanitary napkins from taxes under the GST regime.
