Full GST Council meeting held in New Delhi, Finance Minister Arun Jaitley chaired council meeting

Last Updated: Thursday, October 5, 2017, 23:50
Full GST Council meeting held in New Delhi, Finance Minister Arun Jaitley chaired council meeting
Finance Minister Arun Jaitley chaired the Goods and Services Tax, GST, council meeting in New Delhi. GST council is likely to assess the improvements in the GST Network`s functioning. It may also decide on providing some relief to exporters in terms of faster refunds as well as compliance.

With over 33 lakh businesses filing the final GSTR-1 return, the GoM has tasked GSTN to send reminder text messages to the remaining 20 lakh businesses which are yet to submit the tax forms.

The Goods and Services Tax (GST) Council on Friday is expected to come out with major announcements reducing tax rates of several products, especially those that attract 28% rate besides easing the process of filing returns, a move that will not only help businesses but also customers across the country just ahead of Diwali.

A government official said that the council will focus on all issues of traders and businesses, who have registered their concerns ahead of the festive season, to ensure that all genuine issues are addressed immediately.

The glitch in the GST network portal, where all traders and businesses have to mandatorily file their returns, is one of the major challenges. Prime Minister Narendra Modi has held a meeting with finance minister Arun Jaitley on the implementation of the new tax structure.

The small traders besides exporters have been the worst hit by the GST implementation. A proposal to increase the threshold of the composition scheme from the current Rs 75 lakh to Rs 1 crore or even higher would be looked into by the council.

Under the composition scheme, all small businesses with a turnover of less than Rs 75 lakh were exempt from complying with the rigorous return filing process and pay a fixed percentage of turnovers as a tax.

Refunds of tax too have not been paid as yet, leading to a squeeze in money situation for many traders, including exporters.

The council is likely to take immediate steps to ensure that refunds are released. The reverse charge mechanism, under which tax is charged on a registered entity buying goods or services from an unregistered one could also be deferred.

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