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GST revamp: Relief to exporters, SMEs
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| Union Finance Minister Arun Jaitley (L) chairing the 22nd GST Council meeting, in New Delhi on October 06, 2017. |
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Bikky Khosla | 10 Oct, 2017
Nearly 100 days after implementation of the Goods and Services Tax, the GST Council at its 22nd meeting last week finally came out with some encouraging alterations, which deserve appreciation. After introduction of the new tax regime in July 1, the all-powerful Council had met several times, making numerous changes almost every time, but this time it really managed to address some ground realities. The decisions taken will certainly make life easier for small businesses and exporters, which have suffered the brunt of the central government's rush to introduce the historic tax reform.
The GST council has approved several changes to drastically reduce the compliance burden of SMEs. The decision to allow businesses with a turnover up to Rs 1.5 crore to file returns and pay taxes quarterly (and not every month) from October is a welcome one. Equally welcome is the increase in the Composition Scheme threshold limit, which is now raised to Rs 1 crore from Rs 75 lakh. Similarly, suspension of the reverse charge mechanism till March 2018 is another positive step. Due to this mechanism, many large companies have distanced themselves from unregistered SMEs, and now the situation should change.
A slew of changes have also been made to ease the pains of exporters. First, tax refunds of GST for July will start from October 10 and for August from October 18. Second, merchant exporters are now required to pay a nominal GST of 0.1 percent on the goods manufactured for exports. Third, extension of the Advance Authorization (AA)/ Export Promotion Capital Goods (EPCG)/100 percent EOU schemes is a welcome decision. These measures should help prevent working capital of exporters from getting locked up. Additionally, it is expected that introduction of the proposed e-wallet facility would provide a permanent solution to this problem.
Beyond doubt, the latest decisions of the GST Council have come as a big relief to our SMEs and exporters, and we all hope these decisions would pan out smoothly on the ground. It is also no less a pleasure to see the Centre coming out of its long denial mode and showing some willingness to listen to the problems encountered particularly by small businesses and small exporters under the new tax regime. But there are still some grey areas and the Centre should move swiftly to bring clarity on them. Finally, GST is a structural reform and three months is too short a period to gauge its worth, so patience is necessary from all quarters.
I invite your opinions.
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Many changes required to stop further tax litigations
Bhagawath Prasad | Sun Nov 5 06:08:24 2017
Sir,
Government says "we are listening"hence i am writing this on hope that they will take actions to resolve.
1.IT's known fact that SMEs are short funded and in addition GST rule says , no dues to claim under trans 1, that too after verification,this will surely lead to corruption,kindly get this set-off between payables vs GST credit as of November 30th and proceed for future transaction afresh as per GST rule book, this will ease out to some extent the burden of borrowing from banks, in anycase some money is already blocked at departments against past litigations cases .God knows when do they get resolved. Don't fleeze SMEs with excess collections and deposits.Help us to buy material for running units.
2. There are many items are appearing in both HSN and SAC , kindly adopt a simple method : treat those that are not seen by eye or physically transported as services , and those physically transported are goods.Look at for example printing is service , if content is given by customer and physicals inputs are owned by printers and supplied are called services SAC 9989, I accept the theory, but printed goods are being transported and entries are being made at customers wear-houses and transported again to their dealers or to market , in this scenario it's better to bring these as goods under chapter 48 / 49 than under services.
CEO's Note for GST.
Harishkumar Trivedi | Wed Nov 1 18:06:45 2017
I believe, The GST Bill and NOTEBANDHI both are the steps of Mr. P.M. & FM. are pre- matured delivery with without proper exercise .
The revamp is not enough
Gopinath Jambulingam | Thu Oct 26 04:08:19 2017
MSME's whose turnover is less than Rs.20 lakhs in an AY are exempted from GST registration, but if they render services to overseas clients, they are required to pay Advance Tax, and claim refund later. This is a huge burden for MSMEs. Many MSMEs stopped working for Overseas clients and this would impact the country's forex income for sure. Therefore, overseas income should not be the criteria for GST registration and Advance Tax Payment
GST & Demonetisation
A | Fri Oct 13 07:17:19 2017
The BJP Government is so stupid and Nincompoop when it comes to give benefits to the people or the masses of our Country. But when it comes to making more and more money for themselves and all the party workers and all the government employees (by legalising corruption within all the policy framework) they are brilliant and very smart. On one hand they will break both your legs with all the wrong policy framework (GST and all other exports related policy) and doing Demonetisation (which was absolutely done illegally only to benefit the PM himself and his men) on the other hand kill the policies announced for stand-up India and start-up India. Only God can help India to survive in such environment because the people of India have lost all good morale and senses. God Bless India !
gst waiver for sme and exporter.
md fazlul karim | Wed Oct 11 15:51:33 2017
This is very wise decision by government.
GST Revamp
SJS Ravi | Wed Oct 11 14:47:22 2017
The Bluster is Diwali has come early and the celebrations have started. I say Diwala came even earlier than Diwali and in the mourning period can there be celebrations? There is a good spectrum of countries who have GST. It should not have been difficult to do some deep study and a lot of fine tuning before the introduction of GST. It has taken 22 meetings of GST Council to come up with some chicken feed alms for the community. How many more meetings will be required to get to some semblance of sanity. In some way India is unique with the enormous Informal sector and Rural Agri-based economy, mostly in sub-subsistence mode. Can we put all this in a strait jacket of GST? There should have been some soft start to the whole project. For many a small manufacturer there is a lot of incentive to do cash business. If they buy in cash even without getting discounts, it is a help to him since there is one line reduced in every return, no upfront payment of GST which in any case he is expected to get back. Secondly, no worries if his seller defaults in uploading the GST Data. This is a scam in making in which the honest have a hanging sword on their head. The dishonest is also not really dishonest since he takes his due in advance and reduces the burden on the system. So what is happening here? Regarding the 0.1% to be paid by merchant exporter such a tax cannot even cover the administration cost, so why have it in the first place. Only so that you can show who is the boss!
Sudhir Kumar | Wed Oct 11 09:56:13 2017
Well analysed. Yes, this will show it's effect in one year time. Correctly said we have to keep patience to reach to a conclusion.
GST SSI UNITS
AJAY SACHARIAH MATHEW | Wed Oct 11 08:14:22 2017
NO CONCESSIONAL RATE OF GST HAS BEEN EXTENDED TO SSI UNITS HAVING LESS THAN 1.5 CRORE EXCEPT FILING OF RETURN AND PAYMENT OF GST. IN FACT HITHERTO BEFORE THE INTRODUCTION OF THE GST SSI UNITS WERE LIABLE TO PAY ONLY SALES TAX AND CENTRAL EXCISE DUTY WAS EXEMPTED. NOW GST RATE MADE APPLICABLE TO ALL THE UNITS IRRESPECTIVE OF WHETHER IT IS SMALL SCALE OR LARGE SCALE. ALL THE UNITS IN SMALL SECTOR ARE FACING CLOSURE. GST RATE TO BE CONFINED TO THE ERSTWHILE SALES TAX RATE HICH WERE BEING PAID BY THE SSI UNITS. A MINIMUM GST RATE OF 12% NAY BE FIXED FOR THESE UNITS WITH PROVISION FOR TAKING ITC. THE GST COUNCIL AND THE HON'BLE FINANCE MINISTER MAY KINDLY CONSIDER THIS REQUEST. IN KERALA THERE ARE SO MANY COW RUBBER MAT MANUFACTURING UNITS IN THE SSI SECTOR. THE RATE OF GST FOR THIS PARTICULARS ITEMS IS 28% NOW (HSN: 40169100) IN ORDER TO SAVE THSESE UNITS FROM RUIN BY REDUCING THE RATE TO EITHER 12% OR AT THE MOST 18%. THIS MAY ALSO A MATTER TO BE CONSIDERED FOR ACCEPTANCE.
MicroJob Workers
BalRaj Sawhney | Wed Oct 11 06:49:47 2017
Modiji emphasised & encouraged people to opt for starting a business or manufacturing to support oneself & give employment to one or two other people. The biggest casualty is job workers who own a single machine,moulders start from a tiny machine with upto 10gms produce & upto 100gms there are different machines of more than 20 models doing job works. Similarly metalsheet cutting,bending,polishing,powdercoating and so on. These micro units cannot afford to manufacture on their own & thrive on job work. On the other hand small manufacturers cannot afford so many machines,but rely on job work. To send goods for job work one has to get GSTIN ammended showing place of job work as an additional place of business. It is impossible to add20/30 places as an additional place of business. These single machine,single man units are devoid of job work & small units too face hardships & ultimately shall have to close shops,manufaturing units due to this single problem. If one man units take advances from small units,buy raw materials & supply,an additional burden of GST @18% would be there,because they won,t be getting input tax credit,making the entire micro manufacturing sector jobless.
GST revamp
Subodh Jain | Wed Oct 11 05:48:19 2017
Due to ill conceived GST and its botched implementation cost Indian Exports and exporters very dearly. In light of the changes made by the GST council, how the GST council explain that the orders that were cancelled due to exporters inability to accept orders with no liquidity for which the govt. is solely responsible, that the importers who have shifted their orders with other vendors, can be diverted back to them with the same set of orders and also for future orders. The GST fiasco has put Indian exporters in a great soup and it will not be easy to win the trust of importers back again. How GST council in going to compensate the exporters on the business loss at the first place and for future as well.
Affordable housing scheme
Vijay Singh | Wed Oct 11 05:09:44 2017
Sir, Service tax on affordable housing scheme was zero % before implementation of GST. Now on affordable housing scheme the GST is 12 % . I have booked one affordable house in Gurgaon keeping in view of my budget. Now the cost of may house has increased by 12 %. Had I been knowing that after implementation of GST I have to pay 12 % extra, I would have never booked the affordable house. It is requested that affordable house may be exempted from GST.
GST IMPLEMENTATION
R K BHANDARI | Wed Oct 11 04:39:27 2017
Unless micro experimentation could have done on small segment of business community from all fields, it would have been avoided. Hasty implementation has created havoc everywhere discouraging the government act. Not only this, scheme is good but should have been executed in phased manner. First point should have been manufacturing sector and its input ancillaries instead of raking ordinary businessman. Not only this each and everyone has not been knowledge of it software and depend upon tenth pass accountants running Laptops etc. Instead of business community going to advocates CAs, etc. and still ruining each businessman at ground level to which state is unaware. Frequent changes will again play havoc to understand GST by everyone returns should have been filed only through advocates CAs and professionals or business houses having IT facility with it to avoid any misunderstanding. Ordinary businessman cannot bear the burden or that of tenth pass accountants locally available. Only GST practitioners should be allowed to file GST returns and not anybody else. Provisions be implemented strictly to avoid any pitfalls.
GST. for food items like Meals, coffee, Idly, Dosa etc.
M.Thirugnanam | Wed Oct 11 01:23:20 2017
From the poor and lower& lower middle class people GST for simple food items seems as "very bad".They do not bother about the justifications of the the Government. I travel to villages frequently from my city. BJP had earned a poor name.They may lose votes.we may lose the Very good PM because of this small things.
Regt of export licence
Sanjay kumar Agarwal | Tue Oct 10 19:28:10 2017
Even after issue of export licence we are unable to export against declaration as we need to go with registration etc. Which is taking long time and our customers are suffering and forced to lift the material along with GST charged which becomes really high when they need to pay tax in their country too.
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