One of Prime Minister Narendra Modi-led government major objective, the Goods and Services Tax (GST) was implemented in a major ceremony in the central hall of the parliament. Jaitley is expected to brief media after the meeting ends. 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. GST on sliced dried mango, Gujarati delicacy khakra, unbranded namkeen and unbranded Ayurvedic medicine was slashed from 12 per cent to 5 per cent.
The synthetic filament yarns were earlier under the 18% slab but it today's meeting rate has been reduced to 12%.
- Plastic and rubber waste down from 18% to 5%. The tax rate for air-conditioned restaurants and those with a liquor licence is at 18 percent while five-star hotels have charged 28 percent GST.
Presently, anyone making inter-state taxable supplies, except inter-state job workers, is compulsorily required to register, irrespective of turnover.
It is also been chose to raise the limit of composition scheme to Rs 1 crore which will be helpful for small businessmen to fill returns on the quarterly basis. Last month, representatives from eight export promotion associations met the Revenue Secretary and expressed their concerns over an estimated amount of Rs 65,000 crore being held up in GST input credit if norms are not modified by December. "This is also because only 70 percent tax payers, on an average, are filing GST", a senior official confirmed, admitting that the shortfall will continue for another three months.
"The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore as compared to the current turnover threshold of Rs. 75 lakh".
# Traders to pay 1%, manufacturers 2% and restaurants 5% under composition scheme.
- Restaurants will have to pay 5%.
The meeting also provided inputs for a new export strategy focusing on integrating India into the Regional/Global Value Chain, focus on high and medium technology sectors of exports, revisiting the focus area approach and unleashing the potential of services such as tourism, professional services and e-Commerce. Exporters have also been facing working capital squeeze due to delayed tax refunds. Refunds that exporters get will be used to offset this advance credit. Merchant exporters will pay 0.1% GST for purchases from domestic players. "A professional tech firm will be appointed".
"Committee of officers had examined their problems. the facility for processing their refunds may take some more time".
"The tax refunds to exports will start from October 10". This is an interim measure.
This is an interim decision and the long term solution is not exempting in GST.
# Substantial taxation comes from big players, if you look at GST's collection pattern.