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GST Made Simpler For Small Entrepreneurs In India
Three months after the rollout of the Goods and Services Tax (GST,) the Government announced the GST taxation policies will be revamped to make the process a less painful exercise. The renewed indirect tax regime will help ease the concerns of traders, exporters and small businesses in India.
At the 22nd meeting, the council consisting of all the finance ministers of all the states, announced a slew of new measures to reduce the burden and stress the implementation of the GST has brought to exporters and small businesses. In accordance with the new measures, businesses with an annual turnover of up to Rs. 1.5 crores would be allowed to file quarterly income returns instead of the current provision of monthly filings. This switch over to quarterly filings from monthly fillings will kick off from October 1. However, all the businesses will have to file monthly returns for the July – September period.
The limit for the composition scheme was also been increased to Rs. 1 crore from Rs. 75 lakhs to help the trade and industry sector adjust to the GST compliance. Under the composition scheme, businesses trading in goods have to file 1% tax, while manufacturers and suppliers of food or drinks file a 2% and a 5% tax respectively.
According to Prime Minister Narendra Modi, the changes in the taxation system are in line with the government’s constant endeavor to safeguard the citizens’ interests and ensure a growth in the Indian economy. Speaking about the changes, Finance Minister Arun Jaitley said, “ After almost three months since GST rollout, it is time to deliberate on its effect on various trades and the transition.” PM Modi had indicated earlier this week that the Government was ready to push for relief measures to reduce the problems faced by small businesses and other sections of the economy.
Apart from the new relief measures for small businesses entrepreneurs, the Council also decided to cut the GST rates on 27 other items including the food industry, textile industry and exporters of goods and services. In the meanwhile, services like imitation, zari and printing items will be taxed at 5% instead of the 12%, while service providers with revenue of less than Rs. 20 lakhs have been exempted from the list.
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