Govt. slashes tax rates on 27 items, relief for SMEs, exporters.Three months after the rollout of the new indirect tax regime.
the GST Council on Friday made sweeping changes to give relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and cut tax rates on more than two dozen items.
Businesses with annual turnover of up to Rs 1.5 crore, which constitute 90 percent of the taxpayer base but pay only 5-6 percent of total tax, have been allowed to file quarterly income returns and pay tax instead of the current provision of monthly filings.
The turnover threshold for businesses to avail of the composition scheme that allows them to pay 1-5 percent tax without going through tedious formalities, was raised to Rs 1 crore from current Rs 75 lakh.
“Compliance burden of medium and small taxpayers in GST is being reduced,” finance minister Arun Jaitley told reporters after the 22nd meeting of the Council.
Jaitley said the Council also decided to cut GST rate on 27 common use items.
- Unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 percent from 12 percent.
- man-made yarn used in textile sector has been reduced to 12 percent from 18 percent.
- Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 percent from 28 percent.
- GST on e-waste has been slashed to 5 percent from 28 percent.
- Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 percent tax instead of 12 percent.
- Job works like zari, imitation, food items and printing items would attract 5 percent tax instead of 12 percent.
- Government contracts involving high amount of labour will be levied 5 percent GST instead of 12 percent.
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