GST Council set to give relief to SMEs and exporters today

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Instead, the council chose to focus on straightening out administrative and procedural difficulties in implementation of GST, which have brought the businesses of exporters and SMEs to near grinding halt, and make the reform smoother and simpler. The GST on cab lease services may get cheaper to 18 per cent from 28 per cent.

Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent. GST on e-waste has been slashed to 5 per cent from 28 per cent. While fixing the GST rates, the government had factored in the gains from input tax credit, which it had hoped would be passed on to consumers.

"The GST on khakra and unbranded namkeen has been reduced from 12 per cent to 5 per cent".

Congress leader Randeep Singh Surjewala said, in a series of tweets, that Finance Minister Arun Jaitley should have listened to the sane advice given by party Vice President Rahul Gandhi. Now GST council has made a decision to refund to the exporter and stats refund process for July month by the 10 October and refund of August by 18 October.

The Committee recommended a long term solution and for now an e-wallet for every exporter will be created. GST Council may also approve suspension of reverse charge till March 31.

Payment mode: Ministry of Finance may ease the burden of exporters by allowing electronic payment of taxes through "virtual currency" or e-wallet.

The council is likely to address concerns raised by small-scale industries, traders and exporters.

GST Council meet today also suggested setting up Group of Ministers to analysis key rate cut issues regarding AC restaurants. The GST council will hold its next meeting on November 10th and 11th in Guwahati.

Director-general Datuk Seri T. Subromaniam said the latest amendments to the GST Act had been submitted to the Finance Ministry and are expected to be tabled in the Dewan Rakyat later this month.

The Council is also discussing other relief measures for traders, including quarterly return filing. The composition threshold limit under GST has been enhanced from 75 lakh rupees to one crore.

At the same time, Jaitley promised that none of the large businesses, which will have to file monthly returns, will be denied credit for the taxes paid by their smaller vendors.