Top 10 major changes in GST for small and medium businesses

Top 10 major changes in GST for small and medium businesses

Top 10 major changes in GST for small and medium businesses

As regards the works contracts in the government sector, the GST rate has been reduced from 12% to 5% if the labour content in the contract is 75% or higher, but subject to the rider that there is no overflow of input tax credit as a result.

He said that textiles, second biggest employment generator after agriculture, also continues to face deep stress owing to distorted duty structure threatening to wipe out the living subsistence of millions, of traders, cloth merchants, micro, small and medium businesses.

The GST Council also announced a tax relief for exporters.

The Council has said that refund for July's tax assesses will be available from October 10, while refund cheques will be given to August assesses from October 18. However, with the announcement of exemption of IGST in the recent GST council meeting, exporters claim they may take a month to stabilize.

He said the GST Council agreed to allow SMEs with turnover of up to Rs1.5 crore file their quarterly returns instead of monthly - a relief that would benefit about 90 per cent of taxpayers in the country. A food trader for instance, may be selling unbranded food pro ducts such as flour and daal along with packed and branded items, which face GST.

The GST Council discussed issues faced by small traders and requested quarterly filing of returns for small businesses, Ramakrishnudu told reporters after the meeting concluded.

The real estate sector can also expect some relief as it has been said that the stones used for constructions, that now come under 28% slab will go in 18%.

Along with this, the GST Council said it was open to more suggestions from stakeholders before it meets in Guwahati on November 9-10.

# GST on "Khakhra" reduced from 12% to 5%.

Till then, exporters will have to pay nominal GST of 0.1 per cent for procuring goods from domestic suppliers for export.

Finance Minister Arun Jaitley also said that the rules for small businesses and exporters would be eased under the Goods and Services Tax (GST), a move that could provide relief to thousands of small firms.

While the speculations are rife about what could the government announce, we have listed out 5 major possibilities that can soon become a reality after the council meeting gets over. In the previous meeting GST Council made a decision to re-open the window for composition option and government saw great excitement in retailers, manufacturers and restaurant holders about the composition scheme. A group of ministers has been tasked to study the modalities for extending the composition scheme on inter-state sales and to rationalise taxes on restaurants. Service providers can not opt for the scheme. Pratik Jain, leader, indirect tax, PwC, said: "Deferring reverse charge mechanism on purchases from unregistered dealer is a step in the right direction, which will avoid complex paperwork by purchasers". The truth is that the Indian GST rate is now the highest in the world, he said.

# Service providers with turnover less than Rs 20 lakh are exempt from inter-state service.

Related news

[an error occurred while processing the directive]