Isaac Thomas, finance minister of Kerala, told DNA Money that the government was actively considering relaxing return filing norms for SME by allowing them to file on a quarterly basis instead of every month. Food served at restaurants attract tax at two rates under GST - 12 per cent and 18 per cent - depending on whether it is an AC restaurant or whether it serves alcohol.
Banerjee also stated that raising of turnover for composition scheme from Rs 75 Lakh to Rs 1 crore and deferment of E-way bill provisions till April 2018 are indeed a big relief which will help trade and industry in getting adjusted to the GST compliances. "Moreover, the increase in threshold limit and quarterly returns will augur well for small exporters and job workers as they can focus on business and not procedures", said Amit Goyal, managing director of Mumbai-based Sarju International, a medium-sized company. This is expected to provide a permanent solution to the liquidity problem of exporters.
Even three months after implementation of Goods and Services Tax (GST), the refunds of integrated GST (IGST) are yet to be processed for a number of exporters, leaving them battling with working capital issues. The government expects GST to normalise from January, 2018.
The scheme allows small businesses, including eateries, to pay 1-5 percent tax at a fixed rate of the turnover without having to deal with the three- stage filing process.More news: Depleted Ghana squad prepares to face Uganda
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The panel chose to give an option to taxpayers to avail the composition scheme if their turnover is less than Rs. 1 crore as against the previous limit of Rs. 75 lakh.
With small businesses and traders complaining about the compliance burden the new Goods and Services Tax (GST) regime has put on them, the panel made a decision to give option to taxpayers to avail of the so-called Composition Scheme if their turnover is less than Rs 1 crore as against the previous limit of Rs 75 lakh. The NDA government is now ready to make taxation regime less painful for the businessmen with a significant cut in taxes on the various commodities.
An e-wallet facility, to be operational from April 1 next year, will be credited with a notional amount as an advance refund, which will be used to pay IGST, GST to tackle cash shortage. "The idea of a nominal 0.1% GST is innovative and the concept of e-wallet is a good move in the digital direction", said Siddhartha Rajagopal, executive director, TEXPROCIL. The GoM will have to file its report within a two-week period. Service providers can not, however, opt for the composition scheme.
A majority of these taxpayers have turnover below Rs.1 crore and though they have a low tax input, the compliance burden is quite high on them.