Since the Goods and Service tax (GST), which is said to be one of the biggest tax reform, was rolled out it had been garnering criticism from the opposition. The government had been facing disapproval over hurrying the process of the GST a getting implemented with many flaws. However, while announcing some reforms in the GST policy on Friday, GST council provided a relief to the small business owners and traders throughout the country by announcing major tax relaxations to provide support to the core group of businessmen. The move comes in to boost the slowed economy.
A major relief was cited by the businesses with annual turnover of up to Rs 1.5 crore, after the Finance Minister Arun Jaitely announced the businesses to file income tax returns and pay taxes quarterly instead of monthly, as announced later. The announcement came in as reliefs after the traders have claimed that this is ‘a hectic process for them to comply with’. The traders hailed the announcement claiming that it will save them from all the hassles. Also, service providers with revenues less than 20 lakh per annum will not be liable to pay IGST.
Apart from announcing a relief to the traders, the GST Council also reduced the rates for 27 items. The following announcements came in after India was continuously criticised for slow economy. While addressing the media, the Council said that the GST rate on many daily-use items have been reduced, including manmade yarn, unbranded namkeen, stones used in flooring and diesel engine parts, among others.
During the address, Finance Minister Jaitley also hinted towards reviewing the tax on eating out. He said that tax on eating out is being reconsidered and announced that a group of finance ministers would take a complete relook at the way the restaurants should be taxed.
The list of items whose rates were slashed by the GST Council:
1) At least 6 items which were earlier priced at 12% have now been reduced to 5% only.
The items falling under this bracket are: Mangoes sliced dried; Khakra and plain chapati / roti; unbranded namkeens; unbranded Ayurvedic, Unani, Siddha Homeopathy medicines; Paper waste or scrap; Real Zari.
2) Around 4 item, earlier priced at 18% of GST have been slashed to 12%
Sewing thread of manmade filaments, whether or not put up for retail sale; all synthetic filament yarn, such as nylon, polyester, acrylic, etc; all artificial filament yarn, such as viscose rayon, Cuprammonium; sewing thread of manmade staple fibers, are a few of the items which were covered under this bracket.
3) Prices of around 4 items were reduced from 18% to 5 %
Plastic waste, parings or scrap; Rubber waste, parings or scrap; Biomass briquettes; Cullet or other waste or scrap of Glass are few of items facing a significant reduction in price.
4) Prices of Hard Rubber waste or scrap; E-Waste from 28 % to 5%.
5) Prices of products of children amusements — Poster colour and modeling paste reduced from 28% to 18%.
6) The products whose prices were reduced from 28% to 18% are all goods falling under heading (other than those of marble and granite or those which attract 12% GST); Fittings for loose-leaf binders or files, letter clips, letter corners, paper clip-sand others; plain shaft bearings and diesel engine parts.
7) Price of yarn of manmade staple fibres reduced from 18% to 12%, and duty credit scrips were reduced to NIL from earlier being charged 5%.