GST Council decides to reduce compliance burden of small traders

BY : News Gateway / GST Council / New Delhi / 

The GST regime has been revamped after the 22nd GST Council meeting on Friday. Some major changes have been introduced in the GST regime.

At the golden jubilee function of institute of Company secretaries Prime Minister said that Government would fulfil the promises made to businessmen within 48 hours.

Making GST a Good and Simple Tax, GST Council has announced big relief for small traders and exporters.

At the GST Council meeting chaired by Finance Minister Arun Jaitley, Finance Ministers of all states were in consensus on these reliefs.

Traders with a turnover of upto 1.5 crore rupees will have now have the facility of filing returns quarterly i.e. every three months instead of monthly.

Under the VAT system, there was a provision of filing returns for three months, but under GST, all taxpayers small and big had to file monthly returns. This adversely affected the small traders, who constitute only 5 per cent of revenue for government.

The Turnover of up to Rs. 75 lakh has increased to One crore under composition scheme.

Such businessmen will submit a tax return by depositing a percentage of total sales once in three months.

A 5-member ministerial group will provide composition rights to companies in other states and benefits of input subsidy. Reverse charge has been postponed till March 31 next year.

Under this, registered taxpayers had to pay tax on purchasing goods from non-registered suppliers.

Since GST was implemented, traders have been facing some difficulties. The GST Council has addressed these concerns and has brought relief to small traders in particular.

HIGHLIGHTS

• Traders with turnover of up to 1.5 crore will file quarterly returns instead of monthly

• Under composition scheme, turnover limit of upto Rs 75 lakh will be increased to 1 crore

• Traders will be able to submit returns by depositing 1 percent of total sales in 3 months.

• A 5-member ministerial group to provide right to sell goods and input subsidy to compounding dealers in other states.

• Reverse charge postponed until March 31 next year